Roundup: Greece needs support to tackle crises, can return to growth in 2017: OECD chief

Greece needs support to deal with the double challenge of the debt and refugees crises, and the country can return to growth in 2017, General Secretary of the Organization for Economic Cooperation and Development (OECD) Angel Gurria said here on Thursday.

The OECD chief handed Greek Prime Minister Alexis Tsipras the organization's latest survey on the prospects of the Greek economy.

Greece can return to a 1.9 percent GDP growth in 2017, according to the report, after further contracting by 0.1 percent this year under circumstances and as long as Athens is strongly supported by its European partners and lenders.

In statements to the press after talks with Tsipras, Gurria stressed that no country can face such enormous challenges alone, noting that the escalating refugee crisis poses additional risks for the ailing economy.

According to preliminary estimates the cost of the influx of refugees in Greece stood at around 0.4 percent of GDP in 2015.

The survey acknowledged that "the tide is turning for Greece", Gurria said in a written statement, Greek national news agency AMNA reported.

According to OECD experts, the Greek economy shows significant signs of resilience with the help of another record season for tourism, with tourists arriving in Greece reaching 24 million in 2015.

The labor market shows signs of gradual improvement, with unemployment rates falling from 2013 highs to 25 percent in 2015 and are projected to decline to 24.7 percent this year and 23.8 percent in 2017.

Gurria welcomed the latest successful recapitalization of banks in late 2015 which helped to stabilize the banking system and urged for the completion of the ongoing first review of the Greek bailout program "to further enhance confidence, ignite investments and exports that will support economic recovery."

OECD economists call for bold reforms to boost economic growth and investments to create new job positions in parallel with the continuation of fiscal adjustment and the implementation of policies promoting social justice to address the economic and social challenges in Greece.

In remarks made to media after the meeting with Gurria, Tsipras welcomed the survey's findings as most useful in the negotiations with lenders' envoys which resumed in Athens on Wednesday.

The Greek government and international creditors need to reach an agreement on the next set of reforms and spending cuts before the release of the next bailout tranche to Athens and the start of discussions on the much delayed debt relief.

On Thursday the Greek leader reiterated his confidence over a positive outcome soon that will help the recovery of the Greek economy. Endit