IOBE revises 2013 recession forecast downward to 4.1-4.2 pct

Greece’s economy is expected to shrink by 4.1 to 4.2 percent this year, the Athens-based IOBE think tank said on Monday, revising a previous July forecast which saw a recession as deep as 5.0 percent.

The think tank’s new projections are more in line with estimates by the country’s international lenders.

The European Commission and the International Monetary Fund bailing out Athens expect its 183-billion euro economy will contract by 4.0 percent this year, its sixth straight year of decline.

“The Greek economy is very close to a stabilisation point,» IOBE said in its quarterly report. «The twin deficits which reflected its chronic pathology are approaching a balanced level, and the six-year recession seems to be gradually reaching its end.”

IOBE projected the country’s unemployment rate will average out at 27.5 percent this year, revising down a previous 28.3 percent forecast.


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