Saturday May 23, 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)  
Car sales drop a gear on VAT rate uncertainty
Bulk of loan requests comes from food service
Greek yields climb after Riga summit
Georgios Michelis said to be next HFSF chief
Deal no closer following PM’s meetings in Riga
Athens believes that Greece could still clinch an agreement with its lenders but probably at the start of June, rather than by the end of this month as it had previously hoped, following the...
Greece to back NATO-led campaign against ISIS, Kammenos says
Greece will join the United States and other NATO members in efforts to defeat militants of Islamic State (ISIS), an issue which is expected to be discussed in the summit of the transatlanti...
Inside News
SOCCER
Greece escapes soccer suspension, FIFA happy with changes
FIFA says it is satisfied with changes made to sporting law in Greece, and has dropped a threat to suspend the country from international competition. In a letter to the government dated May...
SOCCER
Four-goal Panathinaikos thrashes Asteras away
Panathinaikos thrashed Asteras at Tripoli to gain an early advantage in the race for a spot in next season’s Champions League qualifiers, as the Super League play-offs got under way on Wedne...
Inside Sports
EDITORIAL
Consensus is key
The education bill that has been put forward by Greece’s leftist-led government has to be the subject of extensive public consultation. Even more importantly, it needs to be approved in Parl...
COMMENTARY
The other inequality: how the state spends our money
Growing inequality between rich and poor across the world has rightly become the focus of much investigation and analysis. The Organization for Economic Cooperation and Development underline...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Deal no closer following PM’s meetings in Riga
2. Greece to back NATO-led campaign against ISIS, Kammenos says
3. SYRIZA, ND waver over agreement
4. Nearly 800 irregular migrants detained as EU mulls refugee relocation plan
5. Car sales drop a gear on VAT rate uncertainty
6. Bulk of loan requests comes from food service
more news
Today
This Week
1. Merkel stamps out brief optimism on Greece after Tsipras talks
2. Lessons from Israel’s tech miracle
3. Tsipras to meet Juncker on second day of Riga summit
4. Civil aviation staff to hold walkout on holiday weekend
5. EOPYY struggles for funding, sees overdue debt rise
6. Banks will be asked to revise their restructuring plans
Today
This Week
1. The Greek-German breakthrough that didn’t come
2. Conspiracy madness
3. Greece came close to not paying IMF
4. National self-awareness put to the test
5. Albanian demarche raises concerns about possible territorial claims over Greece
6. Greek endgame nears for Tsipras as bank collateral hits buffers
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.