Saturday October 25, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
BoG: Salary recovery from 2015

 Increase in investment and exports is required to help the economy revert to growth from this year

By Evgenia Tzortzi

Salaries are expected to start edging higher as of next year, while the reduction in social security contributions from July will entail a drop in labor costs, according to the Bank of Greece.

In its final report signed by outgoing Governor Giorgos Provopoulos and submitted to Parliament on Thursday, the central bank highlights the various uncertainties and risks that could raise obstacles on the road to recovery. That road is open for now, but there is no room for complacency, it adds. The effort must continue without any distractions and must be focused on reorganizing the public sector, continuing with the fiscal adjustment and reforming the country’s production model so as to safeguard long-term, sustainable growth.

Reversing the negative course of investments and boosting exports are the two main requirements for the economy to gradually return to growth within the year, it notes.

The BoG confirmed its estimate that the recession will end and the gross domestic product will expand by 0.5 percent in 2014, while the recovery in terms of employment will be slow, starting from this year. The jobless rate remains particularly high and will only start to decline gradually, given the current level of underemployment in the work force.

Following a significant drop in average salaries that amounted to 6.5 percent in 2013, the decrease will be much smaller this year as employees’ average gross pay will fall 1.5 percent in the economy as a whole and by 2 percent in the corporate sector. Average labor costs per salary worker will decline by 3 percent due to the 2.9 percentage point reduction in employers’ social security contributions as of July 1.

At the same time the average net salary in the corporate sector will go down by 1.4 percent – less than gross salaries – as a result of the 1 percent reduction in employees’ social security contributions from next month. The central bank believes that average gross salaries will edge marginally higher (by 0.1 percent) across the economy and in the corporate sector in 2015, while average labor costs per salary worker will fall by 0.8 percent.

ekathimerini.com , Friday June 13, 2014 (20:24)  
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Taxes kept growing in second quarter
Athens, Nicosia satisfied by EU leaders´ stance toward Ankara
A reference in Friday’s European Council conclusions calling on Turkey to respect Cyprus’s sovereign rights left Athens and Nicosia content with the outcome of the European Union leaders’ su...
Suspended policeman chief suspect in cousin’s murder
A 27-year-old police officer who has been suspended from duty since 2013 for extortion, is being treated as the chief suspect in a murder committed in a suburb of Piraeus on Thursday. Police...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
Tension for tension’s sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has – and prevailed – if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. A win is a win is a win for Olympiakos
2. TAIPED waits for green light from Eurostat
3. Trade deficit shrinks on big drop in imports
4. SMEs unable to claim subsidies
5. Taxes kept growing in second quarter
6. Thessaloniki Port expects 2014 to be record year
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. Clocks to go back 1 hour on Sunday
3. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
4. ECB vies for third time lucky in European stress tests
5. Cyprus GDP upgrade seen as boosting bailout exit plans
6. ECB bank assessment to show 6-billion-euro capital gap, Citi says
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.