Friday Jan 30, 2015 Search
Weather | Athens
16o C
13o 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)  
Greek meltdown splits investors translating Tsipras
Capital flees Greece at fastest pace since 2011
Why Greece went left while Europe turns to right
Greek governments signals very mixed, ECBs Jazbec says
Supreme Court prosecutor orders probe into Lesvos bullying incident
Supreme Court prosecutor Efterpi Koutzamani on Friday ordered an urgent investigation into the bullying of a nine-year-old boy on the island of Lesvos who was left to hang in the basketball ...
Monastiraki restaurant fire prompts panic, restricted before spread
Firefighters managed to bring a large blaze that broke out at a restaurant in Monastiraki, central Athens, under partial control by late morning on Friday. The fire service dispatched 21 fir...
Inside News
SOCCER
Olympiakos draws AEK in Cup quarterfinals
The dream draw of Olympiakos vs AEK in the quarterfinal materialized on Friday, as two of the capital's three giants will face off in a two-leg tie for a place in the semifinals of the Greek...
BASKETBALL
Below-par Olympiakos succumbs to Efes
The winning streak of Olympiakos in the second group stage of the Euroleague ended on Thursday in Turkey, as Anadolu Efes outclassed the Reds in the second half to win 84-70. Olympiakos had ...
Inside Sports
INTERVIEW
SYRIZA must come up with pragmatic solutions, Schulz tells Kathimerini
SYRIZA must realize that it is now the Greek government, not a party running an election campaign, European Parliament President Martin Schulz, the first European official to visit Greece ...
COMMENTARY
Strange haste
The members of the new government must have a lot of confidence in themselves. Several days before announcing his program, Prime Minister Alexis Tsipras and his cabinet have opened up a mult...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Greek meltdown splits investors translating Tsipras
2. Supreme Court prosecutor orders probe into Lesvos bullying incident
3. Olympiakos draws AEK in Cup quarterfinals
4. Capital flees Greece at fastest pace since 2011
5. Monastiraki restaurant fire prompts panic, restricted before spread
6. Why Greece went left while Europe turns to right
more news
Today
This Week
1. SYRIZA must come up with pragmatic solutions, Schulz tells Kathimerini
2. Why Greece went left while Europe turns to right
3. Greek government's signals very mixed, ECB's Jazbec says
4. EU's Schulz: Greece should follow EU line on Russia
5. Monastiraki restaurant fire prompts panic, restricted before spread
6. Capital flees Greece at fastest pace since 2011
Today
This Week
1. Greek Elections 2015 | LIVE
2. SYRIZA heads for historic victory but without majority
3. Greek Elections 2015 | LIVE
4. Greek Elections 2015: The day after | LIVE
5. Poll shows SYRIZA leading ND by 4 pct
6. SYRIZA's win will test institutions
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.