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BoG Report: Greek Economy to Shrink 5% and Unemployment to Skyrocket 19% in 2012

“No reforms, no growth”. That is the conclusion of Giorgos Provopoulos, Bank of Greece chief, in his report for Greece 2012. Economy will shrink by 5% and unemployment will be over 19%, even if Greece sticks to reforms and the fiscal adjustment, as dictated by the second bailout. Nice perspective…

Greece΄s economy will contract by a steeper-than-expected 5 percent this year, the country΄s central bank chief said in a speech to the bank΄s shareholders on Tuesday. The central bank in March had forecast a 4.5 percent contraction in the economy this year, Reuters reported.

Bank of Greece chief George Provopoulos said the country must stick to its reform and fiscal adjustment commitments under a bailout plan agreed with its euro zone partners and the IMF to return the economy to growth.

He also warned that the country΄s membership in the euro zone was at stake if it failed to follow through on its pledges to reform, especially after national elections on May 6.

“If following the election doubts emerge about the new government and society΄s will to implement the programme, the current favourable prospects will reverse,” he said.

He said the euro zone was set for a mild recession this year which could deepen if the debt crisis escalates. (

In 2011, economy shrank by -7% and unemployment reached 17.7%.
More details about Provopoulos report in Greek Here

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