Think-tank issues gloomier economic forecast for Greece
2012-07-10 11:21:39
The Greek economy will shrink by a further 6.9% and unemployment will climb to an historic high of 23.6% in 2012, a think-tank forecast on Monday.
The Foundation for Economic and Industrial Research (IOBE) –headed until recently by Finance Minister Giannis Stournaras, had predicted a 5% decline in the country’s gross domestic product and 20% unemployment in April.
“Household consumer spending is seen coming under additional pressures, mainly originating in developments in the labor market, a continuing rise in unemployment and reductions in pay after the measures regarding salary costs in the second bailout program,” IOBE said.
The Greek economy is in its fifth straight year of recession.