As reported, Greece will remain mired in recession in 2014, while the unemployment rate is not expected to start falling until 2016. The German economists estimate that Greece will need a new bailout package.
The report states that the complete refinancing of Greece through capital markets is highly unlike due to the country’s weak financial situation. According to their forecasts, Greek economy will stay submerged in recession throughout 2014, before starting to recover next year. The Greek Finance Ministry predicts GDP will increase by 0.6% in 2014 and 2.9% in 2015.
On Wednesday, April 9, the Greek government issued its first long-term bond since the start of the financial crisis. The issue of the Greek bond and the country’s return to international markets was much trumpeted by the Greek government with Prime Minister Antonis Samaras stating that “Greece is back”.
However, European press and economic experts claim that the so-called return to markets is not a reason for celebration. German newspaper Süddeutsche Zeitung stated that “Greece is seeing its return to the markets as the country’s return to normalcy. But the situation is a little different”. The newspaper claimed that the Greek government is hiding the truth from its citizens for political purposes.