Greece’s economy should grow 0.7 per cent this year, pulling clear of a six-year recession, but its soaring unemployment rate is likely to drop less than hoped, the country’s leading economic think tank said today.
The IOBE research institute had earlier predicted a small expansion for the year, without setting a forecast. Its GDP growth projection is broadly in line with the European Union and International Monetary Fund estimate of 0.6 percent.
The recession has driven unemployment to record highs and the highest in Europe, leaving nearly three times as many Greeks jobless as in 2008 when the downturn began. IOBE, which had previously expected joblessness to drop to 26 per cent this year, said it now saw the rate easing to an average of 26.7 per cent, citing a wave of public sector layoffs demanded by the country’s creditors. Unemployment was 27.8 per cent in the first quarter.
via Irish Times