Tuesday March 31, 2015 Search
Weather | Athens
14o C
09o 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

Greece’s 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 Greece’s economic recovery with easier access to borrowing.

Tourism growth and improved confidence in Greece have helped the country’s 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 economy’s 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 country’s 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 retail sales dip in January for third month in a row
Greek jobless rate inches up to 26 pct in December
Record cash hits Greek stocks as traders take flier on accord
Investment guru Mark Mobius rules out Grexit, advises sell-offs
Parliamentary speaker prompts ND walkout, anger from PASOK, Potami
Comments by Parliamentary Speaker Zoe Constantopoulou prompted the main opposition to walk out of the House during a stormy discussion on Greece's debt negotiations in the early hours of Tue...
Major effort under way after floods in Serres
Local authorities, residents and members of the armed forces in Serres, northern Greece, worked together on Monday in an effort to limit the damage caused by the Strymonas River, which broke...
Inside News
SOCCER
Cyprus soccer eyes reunion after 60-year divorce
Turkish Cypriot soccer officials on Monday vowed to press ahead with attempts to reunite with the Cyprus Football Association, (CFA), triggering a political storm on the ethnically-split isl...
SOCCER
Three Greek internationals injured in Budapest car crash
Three Greek international soccer players were slightly injured on Monday in a car crash as they travelled by taxi to Budapest airport following Greece's Euro 2016 qualifying goalless draw ag...
Inside Sports
COMMENTARY
Amateur antics or overstepping the mark?
There are 149 plus two reasons why those who have been watching SYRIZA’s progress since its start cannot and never will be able to stomach the leftist party’s coalition with Independent Gree...
EDITORIAL
A pointless debate
Monday’s parliamentary debate between the country’s political leaders left a lot to be desired. There was no information whatsoever about the coalition government’s proposed reforms or the p...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek retail sales dip in January for third month in a row
2. Greek jobless rate inches up to 26 pct in December
3. Record cash hits Greek stocks as traders take flier on accord
4. Investment guru Mark Mobius rules out Grexit, advises sell-offs
5. Shops to open Sunday ahead of Easter holidays
6. Greek government proposes measures worth 3.7 bln
more news
Today
This Week
1. Amateur antics or overstepping the mark?
2. A pointless debate
3. Parliamentary speaker prompts ND walkout, anger from PASOK, Potami
4. Greek government proposes measures worth 3.7 bln
5. Shops to open Sunday ahead of Easter holidays
6. Investment guru Mark Mobius rules out Grexit, advises sell-offs
Today
This Week
1. Next Monday is D-Day for state funds
2. Eurogroup unlikely to be held soon to discuss Greek reforms
3. Moscow expects progress from Tsipras visit
4. Some more equal than others
5. Greece to present reforms by Monday, says gov't spokesman [Update]
6. Greece optimistic on deal with euro area next week
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.