Monday , October 3 2022
Home / News / Economy / OECD – Bank of Greece: conflicting predictions on recession & unemployment

OECD – Bank of Greece: conflicting predictions on recession & unemployment

There must be something rotten in the economic reports, predictions and forecasts concerning Greece. While locals, like the Bank of Greece see “light at the end of the tunnel”, internationals like the OECD seem to see that this light belongs to a train… The Organization for Economic Cooperation and development issued its report on Greece on Wednesday, as did the Bank of Greece on the same day. However the two institutions came down to different results and conclusions, conflicting predictions and forecasts, especially when it come sot recession and unemployment. Moreover, OECD predicted that Greece may need additional funds under its bailout program.

“Greece may need additional funds under its bailout program from the European Union and International Monetary Fund as output drops for a seventh year in 2014, the Organization for Economic Cooperation and Development said.

Gross domestic product will decline 1.2 percent next year, after falling 4.8 percent in 2013, the Paris-based OECD said in a report on Wednesday. The drop in 2014 output is smaller than the OECD’s 1.3 percent forecast in its last report in November. The European Commission forecasts Greece will return to growth next year with a 0.6 percent expansion in output.

“Given the depth of the recession and social tension, the automatic stabilizers should indeed be allowed to operate if economic activity proves even weaker than anticipated by the program,” the OECD said. “Without market access this might imply additional official financing or debt relief.”

Unemployment will reach 28.4 percent next year, while consumer prices will drop 0.7 percent this year and 1.7 percent in 2014, according to the OECD. Public debt will rise to 180.6 percent of GDP next year from 175.1 percent this year, the organization said.” (ekathimerini)

Bank of Greece report here.

PS Now tell me the truth! Is is the light at the end of the tunnel or the train?

Check Also

EU Energy ministers agree on mandatory electricity reduction of 5% in peak hours

EU Energy Ministers reached a political agreement on measures to mitigate high electricity prices: mandatory …