Greece cuts 2024 economic growth forecast again amid EU stagnation

ATHENS (Reuters) - Greece has trimmed its forecast for 2024 economic growth for a second time this year to 2.2%, as stagnation in euro zone countries hits investment and exports, the country's fiscal council said on Monday, citing a government economic plan.

Greece projected growth of 2.9% at the beginning of the year, as the country continued to emerge from a decade-long debt crisis that saw it nearly fall out of the eurozone. The forecast was cut to 2.5% in April, also because of a wider EU slowdown.

"2024 forecasts are based on data on the weak growth of the European economy in the first two quarters of 2024, especially for the country's major trading partners, such as Germany," the council said in a statement.

More than half of foreign direct investment into Greece comes from northern European countries, while two thirds of the country's exports, such as agricultural goods, fuel and pharmaceutical products, go to the European Union.

The council, an advisory body, said the government also trimmed its growth estimate for 2025 to 2.3% from 2.5% previously well above the eurozone average.

Over the medium term, events linked to climate change, including floods and wildfires, will dent economic growth, the council said.

"Natural disasters, which often lead to extraordinary costs, could cast doubt over the growth dynamism of the Greek economy in the coming years," the council said.

The 2024-2025 fiscal plan is expected to be published by the finance ministry on Monday and should be submitted to the European Commission in the coming days.

(Reporting by Lefteris Papadimas; Editing by Edward McAllister and Gareth Jones)