Wednesday October 1, 2014 Search
Weather | Athens
28o C
16o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
IOBE warns crisis will return if reforms are not implemented

By Chryssa Liaggou

The Greek economy will expand by 0.7 percent this year but it risks slipping back into the mire of the recent crisis years unless the reforms are implemented, the Foundation for Economic and Industrial Research (IOBE) warned in its quarterly report published on Wednesday.

For Greeces economy, the dilemma has never been clearer: From the point of stabilization, where it currently is, it can clearly see two paths before it. The first way is that of reform, which will doubtlessly move it away from the crisis, and the other is that of backtracking and compromise with the inefficient production pattern of the last few decades, which sooner or later will lead us back to a crisis, IOBE notes in its report.

Presenting the report yesterday, IOBE researchers stressed that the greatest part of the crisis is behind us and that the central estimate for growth this year is achievable, while unemployment will decline marginally to 26.7 percent this year.

The smaller-than-expected drop in the gross domestic product over the first quarter of the year (0.9 percent instead of 2.3 percent) was attributed to a slight increase in the number of households for the first time in four years, as well as to a rise in service exports thanks to the continued growth in tourism arrivals. Household consumer demand grew by 0.7 percent in the January-March 2014 period from the same time last year, when it had shrunk by 8.7 percent. State consumption expanded by 1.2 percent.

IOBE made a significant point of the exports issue: The first quarter of the year witnessed the biggest increase recorded in exports since the start of 2011, amounting to 4.5 percent, but that was almost exclusively due to the major growth in service exports (up 13.1 percent year-on-year), as commodity exports only posted a marginal rise (0.5 percent).

The report blames this fatigue in commodity export growth on the Greek economys lack of competitiveness. The labor cost factor has not improved the competitiveness of products, IOBE noted, as other factors such as energy costs and liquidity problems have far greater gravity. It added that efforts to improve funding conditions to new productive investments must be accelerated, which also requires some determination in dealing with old debts that cannot be serviced.

ekathimerini.com , Wednesday Jul 23, 2014 (22:32)  
Attica Bank said to have rejected notable offers
PMI index slides anew in September
Costa Navarino to host big events
Construction of F1 circuit at Patra to start by year-end
Terror group link prompts police raids and arrests
Police found a Kalashnikov assault rifle, a handgun, a hand grenade and numerous bullets Wednesday while searching homes in Athens and Thessaloniki used by six people who were detained and a...
Samaras to seek confidence vote in bid to rally coalition
The government said on Wednesday that it will request a vote of confidence when Parliament reconvenes after the summer recess next week, seeking to douse speculation about early elections an...
Inside News
SOCCER
All team sports suspended next weekend in memory of dead fan
The government announced on Monday the suspension of all team sports events in Greece scheduled for next weekend, October 4 and 5, in the memory of the Ethnikos Piraeus fan who died a few ho...
SOCCER
Karamanos punishes Michel for deeming him surplus
Atromitos forced Olympiakoss first loss this season in all competitions on Saturday to allow PAOK to go alone on top of the Super League table on Sunday. Odds-on title favorite Olympiakos l...
Inside Sports
COMMENTARY
Truth before the battle
The coalition has lost its sense of direction in the last few months. Exactly where things went off track is not the question at this stage. What is certain is that if it continues competing...
EDITORIAL
Bending the rules
The flexibility with which laws are implemented has been a fundamental cause for concern in Greece during the post-dictatorship era. Everything becomes a subject for negotiation, even in cas...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Terror group link prompts police raids and arrests
2. Samaras to seek confidence vote in bid to rally coalition
3. Attica Bank said to have rejected notable offers
4. PMI index slides anew in September
5. Costa Navarino to host big events
6. Construction of F1 circuit at Patra to start by year-end
more news
Today
This Week
1. Air-raid sirens to go off all over Greece at 11 a.m. in drill
2. Mario Draghi to push ECB to buy Greek, Cypriot 'junk' loans: FT
3. Truth before the battle
4. Smallpox decimates sheep stocks in northern Greece
5. Thessaloniki transport gets more expensive
6. Bending the rules
Today
This Week
1. Greece may opt for unusual president to avoid snap polls, Venizelos says
2. Woman allegedly buried alive by accident in northern Greece
3. Salaries in Greece continue to slide, dipping 1.4 pct in Q2
4. Should you bet with Kissinger on where the world is heading?
5. Cypriots divided by 1974 war seek Shariah hub
6. The shocking thought of euro-dollar parity
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.