ECONOMY

Greek economy seen shrinking 1.4 percent in 2015, less than expected

Greek economy seen shrinking 1.4 percent in 2015, less than expected

Greece's recession this year is expected to be shallower than initially forecast, with officials expecting a drop in output of 1.4 percent from earlier estimates of a 2.3 percent contraction, sources said on Wednesday.

Sources close to bailout talks said that the lenders had agreed with the new projection. The estimate for a 1.3 percent drop in output for next year remains.

Greek Economy Minister Giorgos Stathakis on Oct. 7 said the drop in output was also expected to be milder, contracting by about 1.5 percent this year.

He told lawmakers last week the economy will benefit from a strong performance in tourism and a milder impact than expected from capital controls the country imposed late in June to stem a deposit run. [Reuters]

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