ECONOMY

IOBE sees Greek recession at 4.6%, unemployment 27.6%, worried about focus of troika talks

The Greek economy will shrink by 4.6 percent of GDP this year and unemployment will reach an average of 27.6 percent, one of the country’s leading think-tanks; the Foundation for Economic and Industrial Research (IOBE) said on Monday.

Presenting its quarterly report on the Greek economy, IOBE – which was led by Finance Minister Yannis Stournaras until last year when he joined the government – expressed concern about the focus of negotiations between the coalition and the troika.

IOBE said that the emphasis was on securing the next bailout instalment and not creating the prospects for growth.

The think-tank was also critical of the failure to restructure the civil service and rid itself of bureaucrats found guilty of breaching the code of conduct.

IOBE also expressed concerns about the impact that an imminent recession in Cyprus, one of the key importers of Greek goods, will have on the Greek economy.

The foundation said that Greece would experience zero inflation this year.