Greek outlook worsens on central bank revisions

The Bank of Greece has downgraded its growth forecast and heightened its inflation estimate for 2008.

Nicholas Garganas, the governor of the central bank, said on Tuesday that growth was now expected to hit 3.5%, which he described as "significantly lower" than the February estimate of 3.7%.

The inflation estimate was revised from 3.4% to 4%. Fears of rising oil and labour costs had been realised, Garganas said, adding that "for this reason inflation will be higher than what we had originally