ECONOMY

More Greek businesses folding as economy contracts

more-greek-businesses-folding-as-economy-contracts

Leading trade credit insurance company Euler Hermes, headquartered in Paris, estimates that the Greek economy contracted by 0.4 percent in 2015 and will shrink 1 percent this year, to be followed by a rebound of 2 percent in 2017.

The company’s estimates were presented on Tuesday in Athens, and came with a warning that for Greece to tackle its public debt it will need to produce gross domestic product growth rates of 5-6 percent per annum from 2018 onward.

Euler Hermes also expects the number of Greek companies going bankrupt to rise 5 percent this year compared with 2015, when there was an increase of 10 percent from 2014.