Saturday September 20, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
OECD sees Greek recovery in 2015, later than expected

Greece's recession will drag on longer than currently foreseen, the OECD said in a report on Tuesday, urging Athens to focus on reforms to kickstart its economy rather than cutting its deficit at all costs.

The economy will not recover before 2015, after seven consecutive years of recession, the Organization for Economic Cooperation and Development predicted in its economic outlook. That is a year longer than currently forecast by the country's government, which expects the economy to recover in 2014.

"A return to positive growth is projected only towards the end of 2014 as world trade strengthens, confidence returns and competitiveness improves,» said the OECD, which expects Greek GDP to shrink by 1.3 percent in 2014, compared with a growth forecast of 0.2 percent that year by the Greek government.

Greece's economy has shrunk by more than a fifth since its recession started in 2008, hit particularly by severe austerity measures imposed by the country's international lenders to finance its rescues.

Greece adopted yet another round of austerity measures earlier this month, aiming to shrink its budget deficit to 3.2 percent of GDP in 2016 from 9.4 percent last year.

If a weaker-than-expected economy scuppers this plan, Athens should not blindly focus on meeting its fiscal targets, but allow social spending to absorb some of the recession and focus on structural forms to boost growth, the OECD said.

"The agreed consolidation measures should be put in place,» said the Paris-based organization. «But if growth proves lower than assumed in the government's fiscal plans, then the automatic stabilizers should be allowed to operate, even if this means missing the set targets."

"The most vulnerable in Greek society need to be better protected from cuts in social spending,» the OECD said.

Greek households' disposable income shrank by about 14 percent year-on-year in the second quarter of 2012, statistics agency ELSTAT said last week, as wages dropped by 15 percent and social benefits by 9.5 percent. Taxes soared by 37 percent over the same period, ELSTAT said. [Reuters]

ekathimerini.com , Tuesday November 27, 2012 (13:07)  
Record sum of new debts to the state in August
‘Greece can meet its needs on its own’
Cyprus civil servants´ strike called off
Elliniko investors eye Cyprus project warily
Mayors resisting evaluation to face disciplinary action
Mayors and municipal employees who refuse to take part in a civil service evaluation scheme the government has undertaken as part of commitments to international creditors will face discipli...
Fyssas rally demonstrators face prosecutor after clashes
Sixty-four people arrested in Keratsini, a suburb of Piraeus, on Thursday, following clashes with police during an anti-racist march marking the one-year anniversary of the murder of rapper ...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
High stakes after the Scottish vote
We will soon know whether the Scots voted for their country’s independence or whether they will remain citizens of the “United Kingdom of Great Britain and Northern Ireland.” What was alread...
EDITORIAL
Breathing room
Even Greece’s biggest critics find it hard to deny that the debt-hit country has achieved an unprecedented fiscal turnaround within a very short period of time. Sure, progress in promoting t...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Record sum of new debts to the state in August
2. ‘Greece can meet its needs on its own’
3. Mayors resisting evaluation to face disciplinary action
4. Fyssas rally demonstrators face prosecutor after clashes
5. PM in energy talks ahead of crucial meeting with Merkel
6. Attiki Odos Lamia exit to close Sunday
more news
Today
This Week
1. Record sum of new debts to the state in August
2. ‘Greece can meet its needs on its own’
3. Hardouvelis signals Greece may skip IMF loans to exit aid curbs
4. EIB signs deals with Greece for 815-mln investment in infrastructure projects
5. Dozens of arrests at march to mark anniversary of Fyssas murder
6. Syntagma metro station to close for Fyssas tribute concert
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. Lost in the fog
5. Democracy under Pressure | Live Streaming
6. SYRIZA spokesman suggests gov't sought to stop NERIT airing Tsipras speech live
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.