Thursday August 28, 2014 Search
Weather | Athens
31o C
24o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek central bank says domestic reforms must continue

Greece needs to focus on cutting government spending and improving the tax administration over the next five years, the central bank said on Thursday, echoing the country's international lenders.

In its twice yearly monetary policy report, the Bank of Greece maintained its forecast that the 183 billion euro economy would expand by 0.5 percent this year.

But it also warned that there was no room for "complacency" on the country's reform drive and said lowering the tax burden on firms and individuals would help investments to recover.

"To avert risks, reforms and the economy's restructuring must continue with stronger decisiveness in all areas," the report said.

"Any backtracking or reversal of the current policy would lead to a new exclusion from the markets and bring back the country to a phase of economic instability," the Bank of Greece said.

Greece's economy, set to emerge from a six-year recession this year, could even top the bank's forecast of mild growth if confidence in the country's prospects continued, the bank said.

Its forecast is just shy of the government and the country's EU/IMF lenders' estimate of 0.6 percent growth.

After years of harsh austerity Greece has corrected its so-called twin deficits - its budget and current account gaps - and managed to return to bond markets after a four-year exile by raising 3 billion euros from the sale of a five-year bond.

The Bank of Greece said confidence in the economy's prospects is gradually recovering with markets discounting an exit from its worst peacetime financial crisis.

It said consumption, the main driver of gross domestic product, is stabilizing and rising revenue from tourism should help boost economic activity this year. But recovery will also require a rise in investment and faster growth in exports.

Greece's economy shrank 0.9 percent in the first quarter from a year earlier, its slowest pace since late 2008 when its protracted recession began, supporting projections that Athens will emerge from a crippling six-year slump this year.

While both consumption and net exports rose year-on-year, gross capital investment fell 7.9 percent. [Reuters]

ekathimerini.com , Thursday June 12, 2014 (15:52)  
Less property tax in the future, says finance minister
New development bank mulled
Bridge on Tripoli-Kalamata highway nears completion
Greece likely to miss Eurostat deadline for reassessed figures
Minister sees no need for university dismissals
Education Minister Andreas Loverdos indicated on Wednesday that he would go against government policy and refuse to fire any university administrative staff. Loverdos said that an evaluation...
Visitor numbers to Greeces most important sites and museums grow
Culture Ministry figures indicate a significant increase in visitors to some of the countrys 38 most important archaeological sites and museums in the second quarter of this year, an improv...
Inside News
SOCCER
Ranieri brings in new faces for his first Greece squad
New Greece coach Claudio Ranieri announced Wednesday a 24-man squad for the first Euro 2016 qualifier against Romania at home on September 7. Earning a first time call up were Olympiakos 21-...
SOCCER
Roma signs Greece defender Manolas from Olympiakos for 13 mln
Greece international Kostas Manolas has joined Roma on a 13 million ($17 million) transfer from Olympiakos, as coach Rudi Garcia looks to strengthen his worrisome defense before Serie A sta...
Inside Sports
COMMENTARY
Diplomacy, not dogmatism
A friend who moves comfortably within the circles of the European establishment recently described a particularly interesting experience when he found himself in a discussion behind closed d...
EDITORIAL
Preachers of hatred
Engaging in public dialogue regarding whether the anti-racism bill is mandatory and sensible is both legitimate and necessary at this current point in time. In the meantime, however, regardl...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Less property tax in the future, says finance minister
2. Minister sees no need for university dismissals
3. New development bank mulled
4. Visitor numbers to Greeces most important sites and museums grow
5. Coalition leaders brief ministers on strategy for troika talks
6. Jailed terrorist was preparing bomb, police say
more news
Today
This Week
1. ND gains one deputy as ousted MP sworn in Lamia mayor
2. Draghi soothes bond market after summer of strife
3. Ryanair to submit bid for Cyprus Airways
4. Venizelos hails Gaza ceasefire
5. ND honorary president taken to hospital
6. Bishop Vartholomaios of Megara and Salamina dies
Today
This Week
1. Brussels warns Greece over plans to allow construction near Korinos beach
2. Logged out of reality
3. Merkel cites euros construction flaws as economy sputters
4. Attack on gay couple in Athens leaves one man needing surgery
5. Second man held over double murder in Mani
6. Purification rituals
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.