Economy to Return to Growth in 2014

November 6, 2013
Written by E.Tsiliopoulos

The Greek economy is expected to shrink by -4.0% this year, from -6.4% in 2012 and to return to positive rates in 2014 (0.6%) rising to 2.9% in 2015, the European Commission said in its autumn forecasts report released in Brussels on Tuesday.

The EU's executive arm, in its spring forecasts had predicted a 4.2% economic recession in Greece and a 0.6% recovery next year.

The Commission said Greek unemployment was expected to rise to 27% this year (unchanged from May's forecasts) from 17.7% in 2011 and 24.3% in 2012, falling to 26% in 2014 and to 24% in 2015.

The country's fiscal deficit is projected to rise to 13.5% in 2013 (reflecting a bank recapitalization cost) falling to 2.0% in 2014 and 1.1% in 2015, while the Greek public debt is expected to rise to 176.2% of GDP this year, from 156.9% in 2012, falling to 175.9% in 2014 and 170.9% in 2015.

The economy is expected to continue deflating this year (-0.3%) and 2014 (-0.4%) and to return to positive inflation rates in 2015 (0.3%).

Tagged under