ECONOMY

Greek central bank trims recession forecast, sees recovery in 2014

Greece’s economy will emerge from a six-year recession and begin to recover next year, the country’s central bank said on Tuesday, trimming its recession forecast for 2013 to 4.0 percent from a previous -4.6 percent.

The Bank of Greece projected the country will attain a primary budget surplus this year, excluding debt servicing costs, expecting the current account balance to hit a surplus.

It said a polarized political climate posed risks to economic recovery prospects, urging the political class to seek common ground on a national policy to exit the crisis.

“Signs that the economy is on a stabilization path have strengthened and there are grounds to project that next year the recession will end and the economy will start to recover,” the Bank of Greece said in an interim monetary policy report. [Reuters]