Tuesday June 30, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Brussels sees Greek economy shrinking by 4.4pct in 2013, unemployment rising to 27pct

The European Commission sees the Greek economy contracting by 4.4 percent this year and unemployment rising to 27 percent, with the public deficit reaching 4.6 percent of GDP.

In its winter economic forecast for the EU, the Commission outlined how it expects 2013 to be another challenging year for Greeks, when the debt-to-GDP ratio is expected to rise to 176 percent of GDP

“Investment is likely to continue underperforming in the short-run, as the majority of businesses still face liquidity constraints or wait to see more evidence of a pick-up of the economy,” the EU’s executive arm said.

“Though exports are projected to grow as the economy is improving its competitiveness, they are likely to remain subdued due to still weak external conditions. It is expected that these factors will continue to dominate for most of 2013, only partially compensated by the reversal of the liquidity squeeze, notably as the government plans to repay arrears for an amount of up to 4 percent of GDP.”

The Commission expects to see the Greek economy recover in 2014, when it is forecast to grow by 0.6 percent. Brussels thinks unemployment will fall to 25.7 percent next year. The public deficit is projected to drop to 3.5 percent of GDP.

“This reflects ongoing positive supply-side developments,” said Brussels. “Reductions in unit labour costs (due to far-reaching labour market reforms) and product market liberalisation are expected to create new business opportunities and to encourage job creation once the economy picks up.

“In addition, the bank recapitalisation process and the overall stabilisation of the country are setting the preconditions for a return of capital to the country and renewed credit flows to the private sector. With a large part of the fiscal consolidation effort already legislated, consumers and investors appear to start regaining confidence which should strengthen domestic demand in 2014.”

Greece is implementing austerity measures worth 7.2 percent of GDP this year and next.

The European Commission also forecasts that further labor market reforms will lead to compensation per employee falling by 7 percent this year and 2 percent next year.

This will contribute to deflation of 0.8 percent this year and 0.4 percent in 2014.

The current account deficit is expected to decrease from 7.7 percent of GDP in 2012 to 4.3% in 2013 and 3.3 percent in 2014.

The Commission says there is a possibility recovery will begin in 2013 rather than 2014 but warns that depressed demand may also trigger higher unemployment.

ekathimerini.com , Friday February 22, 2013 (12:46)  
Greeks check goods online, buy at stores
Closure of country’s banks leads commerce to grind to a halt
Public coffers run dry as taxes go unpaid
ATHEX: No trade until next Tuesday at the earliest
Tsipras says ´no´ vote will help talks but ´yes´ will prompt political developments
Prime Minister Alexis Tsipras indicated on Monday that Greece was still open to an agreement with creditors, “even at the 11th hour,” made it all but clear that a payment due on Tuesday to t...
EU officials say referendum is on euro or drachma
A number of European leaders warned Greece on Monday that Greeks face a choice between the euro and the drachma when they go to vote on Sunday, regardless of the government insisting that a ...
Inside News
SOCCER
English keeper Steele stays with Panathinaikos
English goalkeeper Luke Steele has extended his contract with Panathinaikos until the summer of 2018, the Greek Super League club announced on Monday. Former England youth international Stee...
VOLLEYBALL
Great wall of China insurmountable for Greece
The Greek men’s national volleyball came mighty close to snatching a spot in the Final-Four of the World League’s third division, but eventually succumbed to China in front of some 4,000 fan...
Inside Sports
Switching the rules for the referendum
The legislative decree that the government just issued changes in its favor the rules that apply for the carrying out referendums. It states that «if it is not possible to put together one s...
COMMENTARY
Playing the last chips
Prime Minister Alexis Tsipras played his last chips and the country is already experiencing the results. If he has come to terms with the idea of Greece returning to the drachma then you can...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Tsipras says ´no´ vote will help talks but ´yes´ will prompt political developments
2. Greeks check goods online, buy at stores
3. Closure of country’s banks leads commerce to grind to a halt
4. Public coffers run dry as taxes go unpaid
5. ATHEX: No trade until next Tuesday at the earliest
6. Double default day for Greece?
more news
Today
This Week
1. Greek government says no limit on bank withdrawals for foreign tourists
2. Playing the last chips
3. Poll shows chances of Greece euro exit balancing on knife's edge
4. Referendum asks Greeks simply to accept or reject creditors' plan
5. Cautious Merkel on verge of biggest risk with 'Grexit'
6. ECB rejected Greek funding line request for extra 6 bln euros, say sources
Today
This Week
1. Greek government says no limit on bank withdrawals for foreign tourists
2. Greek referendum offer is more con than democracy
3. Greek negotiators learned of referendum proposal from Twitter
4. Greeks want to stay in eurozone, two polls show
5. A decision with no preparation
6. Europe, a big phony
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.