Senior Euler Hermes and Allianz economist Katharina Utermoehl said the Greek government was slipping in its reform program, making particular reference to a scheduled and pre-legislated round of social security spending cuts that Athens wants to avoid at all costs.
Senior Euler Hermes and Allianz economist Katharina Utermoehl said the Greek government was slipping in its reform program, making particular reference to a scheduled and pre-legislated round of social security spending cuts that Athens wants to avoid at all costs.
In an interview with "N", Utermoehl also said employment in the thrice-bailed out country is increasing, in volume, but not in the quality of newly created jobs.
She also added that the Tsipras government must accelerate the lifting of capital controls, which continue to plague what she called a still fragile Greek banking sector.
Utermoehl forecast Greek GDP growth at 2 percent for 2018 and rising to 2.5 percent in 2019, predictions in line with the Commission and IMF, among others. Although she said economic growth has been sped up, the forecasts are promising but still not a "dynamic recovery".
She called weak investment rates in the country as her biggest concern, with the biggest portion of GDP growth so far attributed to private consumption.
"Maintaining and boosting investors' confidence is of vital significance, and for this reason the cohesion of policies is decisive. This includes a full adoption of reform promises and a full implementation of measures. There is no room for disappointment here. Within this framework, it's unfortunate that the government is already behind in its reform promises, especially for the last round of pension cuts," she said.