OECD expects Greek economy to start growing next year

Unlike the Greek government and the European Commission, the Organization for Economic Cooperation and Development (OECD) does not expect Greece’s economy to grow this year.

In its bi-annual Economic Outlook the OECD foresees the Greek economy shrinking by another 0.3 percent of GDP this year. It expects there to be growth of 1.9 percent of GDP next year.

Greece and the Commission believe there will be marginal growth from this year.

The OECD sees unemployment at 27.1 percent this year and edging downwards to 26.7 percent this year.

On a global level, the Paris-based organization expects the world economy will expand 3.4 percent this year instead of the 3.6 percent predicted in November.

“Part of this deceleration is benign, reflecting cyclical slowdowns from overheated starting positions,” said OECD Chief Economist Rintaro Tamaki.

“However, managing the credit slowdown and the risks that built up during the period of easy global monetary conditions could be a major challenge.”