Greece’s economy is expected to shrink by 4.8 to 5.0 percent this year, the Athens-based IOBE think tank said on Tuesday, forecasting a deeper recession than the country’s international lenders.
“The projection on growth must be adjusted downwards – the recession this year will be around 5.0 percent,» IOBE said in its quarterly report. IOBE’s projection also sees a deeper slump than its previous -4.6 percent forecast.
The European Union and the International Monetary Fund bailing out the country expect the economy to shrink by 4.2 percent in 2013, its sixth straight year of contraction. The Bank of Greece projects a contraction of 4.6 percent.
IOBE projected the country’s unemployment rate will rise to 27.8 percent this year, upwardly revising a previous 27.3 percent projection. [Reuters]