The Greek economy is expected to grow by an annual rate of 0.5% this year - against a previous forecast for 2.5% - from 0.8% in 2014, according to the European Commission’s Economic Forecast Spring 2015, published on May 5. This is based on the assumption that the government will have reached an agreement with its creditors by June and that business sentiment and the liquidity conditions of both the state and the banks will revert to last year’s level.

The primary surplus forecast has been revised to about half the previous estimate and is seen coming in at 2.1% of GDP, or €3.8 billion, if all measures included in the budget are implemented, while Brussels believes some new measures will also be necessary.

More information: EC Full Forecast for Greece