Greek GDP to fall in 2016, but by less than expected

BRUSSELS: Greece's economy will be the only one in the European Union to shrink this year, the EU Commission said on Thursday, but the fall is much smaller than previously estimated.

Greek gross domestic product will drop 0.7 percent in 2016, while the euro zone is expected to grow 1.7 percent and the 28-country EU bloc will expand by 1.9 percent, the EU executive said in its winter economic forecasts.

The Commission has however significantly reviewed upward its previous estimates on the Greek economy both for 2016 and for the past year.

In November, the EU executive forecast a 1.3 percent fall of Greek GDP in 2016 and a 1.4 percent drop in 2015. The revised figures show that last year Greek growth was flat last year, and will fall much less than previously foreseen this year. Estimates for Greece in 2017 remain unchanged with a projected 2.7 percent growth.