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For the first time Brussels forecasts growth for the Greek economy

25 February 2014 / 18:02:36  GRReporter
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The European Commission has positive expectations related to the future of the Greek economy. The new report, which was presented today in Brussels, shows that the recession in Greece in 2013 will be calculated at 3.7%, which is 0.3% lower than the previous forecast of 4%.

Furthermore, the European Commission for the first time forecasts growth for the Greek economy, estimating that it will reach 0.6% this year and 2.9% in 2015.

Brussels also expects an improvement in the labour market, with a gradual decline in the unemployment rate from 26.4% in 2013 to 25.7% in 2014 and 24.6% in 2015.

At the same time, the expectations for the final ratio between the gross domestic product and the public debt are positive too. According to the European Commission, it will be in the range of 177.3 of GDP in 2013 and will decrease to 177% in 2014, reaching 171.1% a year later.

It is expected that deflation will continue this year too, its rate reaching 0.6% in comparison with 0.9% in 2013. According to the administration in Brussels, prices will increase by 0.2% in 2015.

The European Commission forecasts growth in the euro area economy too and expects it to reach around 1.2% after the 0.4% recession in 2013. By 2015 the growth of the euro area economy is about to reach 1.8%. Accordingly, the European Union is expected to grow by 0.1% in 2013, 1.5% in 2014 and by 2% in 2015.

However, the European Commission has reduced its expectations for the course of the prices and the labour market, because it forecasts 1% inflation rate in the euro area compared to the previous forecast of 1.5%. It expects that this assessment will materialize in 2015 when the inflation rate will be around 1.3%.

This year, the unemployment rate in the European Union is about to reach 12% despite the earlier forecast of 12.2%.

Tags: EconomyGrowthInflationUnemploymentPublic debtGross domestic productEuropean Commission
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