Jobless rate to top 30 pct next year

Unemployment will soar above 30 percent next year, a report by the Center of Planning and Economic Research (KEPE) showed on Friday.

The report published in the KEPE journal showed that the jobless rate this year will amount to 28.5 percent before climbing to 30.4 percent in 2014. Should this forecast prove correct, it will generate even more difficult conditions in society and the market: “This is a particularly negative development, but it is also inevitable given the continuing reduction in economic activity,” the report noted.

In this context, KEPE estimates that the economy will shrink by 4.09 percent this year, against a budget forecast for 4.5 percent, followed by a 0.55 percent contraction in 2014, while the government expects a return to growth to the tune of 0.6 percent next year.

KEPE also projects deflation of 0.18 percent this year and 0.12 percent in 2014.