Greek economy expected to grow 0.7 pct in 2014, IOBE think tank says

Greece's economy is expected to grow by 0.7 percent this year pulling itself out of a six-year recession, helped by higher tourism revenues and stronger household spending, the Athens-based IOBE think tank said on Wednesday.

IOBE had earlier predicted a small economic expansion for the year, without setting a forecast.

Its new projections are broadly in line with estimates by the country's European Union and International Monetary Fund lenders who expect the 183-billion euro economy to grow by 0.6 percent in 2014.

"The IOBE now expects the Greek economy to grow by about 0.7 percent this year." Household consumption would grow by 1 percent this year mainly due to easing unemployment during Greece's high tourism season in the summer months.

The EU and the IMF see private consumption dropping by 1.8 percent this year. IOBE projected unemployment would average out at 26.7 percent this year, upwardly revising a previous 26 percent forecast. [Reuters]