Monday September 1, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
OECD sees recession spilling into 2014

 Report states that fiscal stability will require a further lightening of the state debt and a return to growth

By Sotiris Nikas

Greeces debt needs to be lightened further if the country is to return to fiscal stability, according to a report by the Organization for Economic Cooperation and Development (OECD), which forecasts a 0.3 percent economic contraction for this year against the 0.6 percent increase in gross domestic product that Greek and European authorities are expecting.

The international economic organization does expect the economy to revert to growth at some time over the course of 2014, but it believes that will not be enough to put it on positive ground for the whole of the year. Next year should see a healthy 1.9 percent expansion of the economy, the OECD says, while Athens and its creditors expect 2.9 percent growth.

In its six-month report on the global economy the OECD notes that a further lightening of the debt with the extension of maturity dates or the reduction of interest rates could be the solution. The report links Greeces economic recovery with easier access to borrowing.

Tourism growth and improved confidence in Greece have helped the countrys economy put the worst behind it. The labor market has started to stabilize, it finds, although the jobless rate remains at a particularly high level: It should end 2014 at 27.1 percent against 27.3 percent at end-2013, the OECD forecasts. In 2015 it should drop to 26.7 percent. Salaries and prices will continue to decline albeit at a slower rate than previously.

The OECD says that significant economic growth rates and an additional fiscal adjustment are required for the public debt to become sustainable. Structural reforms are needed to strengthen the Greek economys competitiveness, along with improved liquidity. It adds that cash flow may improve more than expected thanks to the outcome of the recapitalization of the systemic banks and the return of investor confidence following the countrys return to the markets.

The report identifies two main risks for the economy: The first concerns delays in the implementation of the streamlining program that may undermine investor confidence, while the second involves the banking sector, which continues to be dogged by nonperforming loans.

ekathimerini.com , Tuesday May 6, 2014 (22:46)  
Greek economy shrinks at slowest pace since late 2008
Prospect of Greek grand prix back on the agenda; huge investment needed
Juggling lighter tax burden and fiscal targets
Government tries to get handle on NPLs
Hardouvelis optimistic ahead of Paris meeting
The Greek government has stepped up its efforts in advancing the structural measures it has committed to, Finance Minister Gikas Hardouvelis said Monday ahead of a two-day meeting with troik...
Erdogan visits Turkish-occupied Cyprus
Recep Tayyip Erdogan was on Monday expected in Turkish-occupied northern Cyprus in his first official visit as new Turkey President. Erdogan, who was sworn in as his country's first popularl...
Inside News
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
SOCCER
Tough draw for Greek sides in Europa League group stage
Following Thursday nights high, when all three Greek teams competing in the Europa League made it into the group stage of the competition, a harsh reality struck Friday as they found out wh...
Inside Sports
COMMENTARY
A great president
I fully understand the countrys need for political stability, a necessity which makes the election of a president by the current Parliament absolutely imperative. At the same time, however,...
EDITORIAL
Dont feed the zombies
There can be no growth without resolving the issue of nonperforming business loans. However, the solution to this problem should not be based on old establishment criteria, such as political...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Hardouvelis optimistic ahead of Paris meeting
2. Erdogan visits Turkish-occupied Cyprus
3. Greek economy shrinks at slowest pace since late 2008
4. Laid-off cleaners to protest outside police headquarters
5. Protesters interrupt blessing ceremony at University of Athens
6. Deputy Education Minister Koukodimos resigns
more news
Today
This Week
1. A great president
2. Dont feed the zombies
3. Excavation work at Amphipolis reveals section of marble mosaic floor
4. Greek officials meet to fine tune strategy for Paris talks with troika
5. Deputy Education Minister Koukodimos resigns
6. Protesters interrupt blessing ceremony at University of Athens
Today
This Week
1. Attack on gay couple in Athens leaves one man needing surgery
2. The battle against progress
3. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.