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]