BUSINESS

IOBE expects recession at 1 pct this year

SOTIRIS NIKAS

TAGS: Finance

Greece will suffer a contraction of 1 percent of its gross domestic product, a report by the Foundation for Economic and Industrial Research (IOBE) warned on Wednesday, stressing that the country cannot waste any more time and that it must take all necessary action to bolster investment.

That forecast compares with the projection for a 0.6 percent contraction by the government and -0.3 percent by the European Commission.

“The economy is at a crucial point and developments in Europe have compressed time considerably. There is no margin for delays. It’s time for decisions,” said Nikos Vettas, the general director of IOBE, at the report’s presentation.

IOBE chairman Takis Athanasopoulos said that the second quarter of this year will go down in history as a very significant period. Most importantly, he added, “all of us, the government, the opposition, workers, corporate officials and entrepreneurs, are speaking about the need for investments that will create jobs, and generally about the growth of entrepreneurship. It is up to us how rapidly and efficiently we can make the most of those advantages.”

Vettas stressed that “unless the Greek economy reverts immediately to growth, we fear there will be a negative impact on the productive enterprises of the country, as there is simply no more space for them.”

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