OECD: Greek Recession Will Continue into 2014



Greek RecessionAccording to an OECD report (Organization for Economic Cooperation and Development) published on Tuesday, the recession in Greece is predicted to continue in 2014. The economy will not recover before 2015.

OECD predicts recovery of the Greek economy in 2015, with a rate of 1.8%. As noted in the report, the development of the Greek economy is expected to return to positive levels from quarter to quarter during 2014.

This forecast  is based on the premise that competitiveness, exports and investments will increase. However, the domestic demand will be reduced because of the continuing  efforts for fiscal consolidation and the low bank balance sheets.

The negative aspect is that unemployment will remain high and so inflation will be kept in negative rates.

OECD advises however that fiscal consolidation should continue as planned due to the high level of debt. However, if growth proved less than expected, automatic stabilizers will be allowed to operate.  The organization leaves the possibility open of a new debt reduction so that the sustainability of public finances is ensured.

The report estimates that the reforms already made regarding the markets will  improve the price competitiveness and the redistribution of resources to activities with an international orientation, even if additional reforms are required.

Finally, a more efficient and fair tax system is a prerequisite for economic growth and social integration.

The organisation estimates that in 2013, the budget deficit will stand at 2.4% of GDP, in 2014, at 2.2% of GDP and in 2015 at 1.4% of GDP.


3 COMMENTS

  1. Greece should be in Europe when politicians should be in jail for cooking the books. As we speak, Greek politicians are still unable to put things right because they will lose their career if they do so. Greek politicians used to treat the country as their own business and the public sector as their servants for their own benefits and the benefit of their parasites from both the public and the private sector inside and outside the country’s borders. The massive corruption within the government corridors is unimaginable to describe because the level of corruption is well rooted and hard to crack. Greek politicians are traitors simply because they promised on oath to faithfully execute, preserve, protect and defend the Constitution of the Hellenic Republic to the best of their ability. Unfortunately, they never did instead they cared about the welfare of their parasites to keep them in power. As we speak corruption still going on within political parties.

  2. Eu keeps pouring money to the septic hole called Greece. They take away the money and they do nothing in return for the whole European community as a whole. They only contribute to wars and instability to the region.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.