Thursday Jul 31, 2014 Search
Weather | Athens
32o C
25o 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)  
Govt reins in spending of regions
Intralot to run one-horse race for betting permit
Work to start on Academy Gardens
Banks shift to corporate credit
Strawberry farm shooting verdict draws ire
There was an outcry on Wednesday after the owner of a strawberry farm in the Peloponnese, where 28 migrant workers were shot last year, was cleared of any wrongdoing along with one of his fo...
Greece evacuates Tripoli embassy
Greece dispatched a navy frigate to Tripoli on Wednesday after the Foreign Ministry decided to evacuate all personnel from its embassy in the Libyan capital as fighting between rival militia...
Inside News
SOCCER
Goalless draw at Liege puts Greens in driving seat
Panathinaikos got the upper hand in the battle for entry to the Champions League playoffs after snatching a goalless draw at Standard Liege on Wednesday. If anything, the Greek cup holders m...
SOCCER
Greek league recruits former referee Dallas
Former referee Hugh Dallas has been appointed as the head referee of the Greek Super League, the Hellenic Football Federation (EPO) said in a statement on Wednesday. The 56-year-old Scot ear...
Inside Sports
EDITORIAL
Populism eating up education
The fact that the issue of education is not topping the list of priorities for the current coalition government, but instead, has been left in the hands of incapable politicians is utterly i...
COMMENTARY
A valued but mistreated professional
I did not know much on a personal level about Dimitris Stefanou, Greeces former administrative reform general secretary who died earlier this week at the age of 46. I did, however, have a s...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Goalless draw at Liege puts Greens in driving seat
2. Strawberry farm shooting verdict draws ire
3. Govt reins in spending of regions
4. Greece evacuates Tripoli embassy
5. Former municipal police officers put on the beat in city center
6. Intralot to run one-horse race for betting permit
more news
Today
This Week
1. Wine cup used by Pericles found in grave north of Athens
2. IMF's Lagarde not sure yet about debt relief for Greece
3. Six firms submit bids to lease Vouliagmeni beach
4. Coalition submits new proposals for Greek coastline
5. Police arrest one, seek another three over counterfeit goods
6. EU Commissioner Damanaki unlikely to return to Greek politics
Today
This Week
1. Quadriplegic woman on life support 'dies due to unpaid power bills'
2. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
3. Front-line threats
4. Defense Minister Avramopoulos to represent Greece at European Commission
5. Greek coast guard picks up 77 migrants off Myconos
6. Greece names fifth privatization agency chief in four years
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.