Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Economy contracts by just 1.1 pct in January-March

 Finance Ministry officials say growth may beat budget forecast

By Sotiris Nikas

The Greek economy posted its smallest contraction in four years during the first quarter of 2014, shrinking by 1.1 percent against 6 percent in the same period last year, according to data released on Thursday by the Hellenic Statistical Authority (ELSTAT).

The figures have increased Finance Ministry optimism that after the six-year recessionary cycle, growth could in fact turn out to be more than the 0.6 percent forecast in the 2014 budget.

Greece is expected to return to positive growth rates within 2014 after six years of deep recession as a cycle is closing and a new one is opening, Finance Minister Yannis Stournaras commented yesterday. The challenge now is not just for the economy to recover, but to create a new, more extrovert growth model for the benefit of citizens and enterprises, he said while addressing the German-Greek Chamber of Commerce and Industry.

The last time the Greek economy saw such a low contraction level was in the first quarter of 2010, when it shrank by 1 percent, meaning that the economic decline has slowed to a level last seen before the country entered the bailout process in spring 2010.

Gross domestic product amounted to 36.8 billion euros in the January-March period from 37.2 billion a year earlier, with ministry officials saying that this small contraction marks the end of the recession as they expect the economy to revert to growth from the current quarter, providing the following conditions are fulfilled:

-- Tourism arrivals and revenues must record growth compared with last year, as forecast by authorities.

-- Consumption must increase following the distribution of the so-called social dividend.

-- Market liquidity must improve following the payment of the states expired debts to the private sector.

Officials say that if the above conditions are fulfilled, GDP will not only grow by the 0.6 percent officially forecast but even more, although they urge caution for fear of unforeseeable events.

ekathimerini.com , Thursday May 15, 2014 (22:31)  
Tourism targets rise ever higher
Horse race betting hurdle removed for OPAP
Revised GDP data confirm that Greek growth is near
Measures to reduce unemployment
Education minister calls for probe into predecessors reform plan
Following reports that a plan to reform the tertiary education sector launched in the spring of 2013 failed to lead to millions of euros in savings, Education Minister Andreas Loverdos on Mo...
Anti-racism bill goes back to Parliament
An anti-racism bill, foreseeing stiffer penalties for individuals and political parties that engage in racism or incite racist violence, is to be debated in Parliament on Tuesday following m...
Inside News
BASKETBALL
Greek hoopsters go top of their group in World Cup
Greece has qualified to the second round of the FIBA World Cup after going top of its group of six through a third win in as many group games in Spain. On Monday it beat Puerto Rico 90-79 in...
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...
Inside Sports
ANALYSIS
EUs three big problems all linked
The outgoing president of the European Council, Herman Van Rompuy, said at the weekend that his successor, Donald Tusk, currently Polands prime minister, faces three big challenges: the sta...
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,...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Greek hoopsters go top of their group in World Cup
2. Tourism targets rise ever higher
3. Horse race betting hurdle removed for OPAP
4. Revised GDP data confirm that Greek growth is near
5. Measures to reduce unemployment
6. Peachy export data despite Russian embargo
more news
Today
This Week
1. Excavation work at Amphipolis reveals section of marble mosaic floor
2. A great president
3. Erdogan visits Turkish-occupied Cyprus
4. Greek economy shrinks at slowest pace since late 2008
5. Dont feed the zombies
6. Greek officials meet to fine tune strategy for Paris talks with troika
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Attack on gay couple in Athens leaves one man needing surgery
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.