The financial recession will be decreased in 2014 to 4% from 6.4%, according to the financial forecasts provided by the European Commission published today in Brussels.
Olli Rehn, the Union’s commissioner for economic and monetary affairs, formally presented the so-called autumn economic forecasts saying “there are increasing signs that the European economy has reached a turning point, but it is too early to declare victory.” He added that a key issue is that “unemployment remains at unacceptably high levels.”
According to the forecast, the unemployment in Greece is reaching to 27% in 2013 and is expected to decreased to 24% in 2015.
Across the Union, unemployment was expected to be 11.1 percent in 2013 and before slightly easing to 11 percent in 2014.
The commission based on previous forecast, introduces Greek economy recovery in 2014 to 0.6%, which will be consolidated in 2015 to 2.9%.
In addition, the average recession in the Eurozone will reach -0.4 % as well as in 2014, the growth is projected at 1.1 % and 1.7 % in 2015. Due to the recapitalization of banks, the fiscal deficit will be reduced to 2% in 2014 and 1.1 % in 2015.
The EU Commission estimates that development in exports and revenues increase from shipping and tourism will gradually contribute to the Eurozone recovery.
Moreover, the positive financial and social evolution is connected to regaining confidence by positive results from touristic flows as well as to greater liquidity from public arrears repayment. The recapitalization of banks is a major factor that could also stabilize the financial situation.
In structural terms, the fiscal adjustment was substantial and led to a predicted structural surplus in 2013 whereas in 2009 had a deficit of 15% of GDP. The real GDP is expected to grow in 2014, with an annual rate of 0.6 % by exports and investment.
However, the Commission considers there are some risks associated with the variations in the policy implementation that might put into question the confidence issue in 2014 and 2015, affecting the range and investment speed and export development as well. They also point out that last summer there was a sharp revival of tourism in Greece, which benefited from strong competitiveness in contrast with other traditional tourist destinations.
Mr Rehn stated, “the fiscal consolidation and structural reforms undertaken in Europe have created the basis for recovery and we must continue working to modernize the European economy.”
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
