IMF slashes forecast for jobless rate

IMF slashes forecast for jobless rate

The International Monetary Fund has significantly improved its projections for unemployment in Greece, despite the adjustment of the growth rate to a lower level, and is not significantly concern about a jump in the jobless rate once the economic support measures come to an end.

According to its World Economic Outlook published on Tuesday, the Fund anticipates an economic recovery of 3.8% for this year, down from a previous estimate for 4.1%, with the year’s fourth quarter projected to post 6.9% growth and a 5% annual expansion across 2022.

The unemployment rate proved well below the IMF’s estimates last year, as it came to 16.4%, against a forecast for 19.9%, so the Fund now is anticipating that the jobless rate will come to 16.6% this year, well below the previous forecast for 18.3%. In 2022 the rate is now expected to drop to 15.2%.

In other projections, the Fund foresees the account balance posting a deficit of 6.6% of gross domestic product this year, compared to 7.4% in 2020, before falling to 3.5% in 2022. Inflation is seen crossing into positive territory this year, at 0.2%.

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