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Economic crisis not upsetting

17 August 2009 / 13:08:52  GRReporter
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Greece's GDP has dropped with 0.2% during the second trimester of this year compared to last year's same period. According to the National Statistical Service of Greece the GDP drop-down is caused by decreased investment and lowered exports.

Recently the International Monetary Fund has predicted a lowering of 1.7% of Greece's GDP this year and unemployment growth up to 9.5%. Greece's central bank is also preparing for economy shrink with up to 1% for this year. Experts say that Greek economy has already entered recession. This is a period of a temporary decrease of production, increase of unemployment, as a result of high inflation. One of the most popular theories says that a period may be called a recession when there has been negative growth of the economy for longer than two successive trimesters. Consequences from crises like this, as the one between 1973 and 1985, are apparent- growing difficulties for companies, bankrupts and increase of unemployment.

Up to now, only tourism has been bringing substantial revenues, comprising nearly 1/5 of the entire budgetary income. Furthermore, tourism has been providing working positions for one out of 5 Greek citizens. The Greek National Tourism Agency announces that a 5.94% decrease in its revenues has occurred in July 2009. Travelers on thirteen airlines in Greece have decreased compared to the same period in previous years. According to experts such shrinking of numerous branches is not upsetting, the following year is expected to bring balance in different European countries, including Greece.

Dilyana Ivanova

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