Greece predicts sixth year of recession in 2013


Greece predicts sixth year of recession in 2013

Anti-austerity protesters in Athens 26 September Anti-austerity protests have racked the streets of Athens all year
Greece is predicting that its economy will shrink for a sixth year in 2013 as it continues to feel the effects of austerity measures.
The economy will contract by 3.8% next year, it said in a draft budget submitted to parliament.
Greece also predicts its economy will shrink by 6.5% this year, worse than a previous estimate of 4.8%.
About 8bn euros worth of cuts have been proposed for 2013, covering public-sector pay, pensions and welfare.
The cuts are necessary if Greece is to get the next instalment of the funds from the IMF and eurozone that bailed it out - again - earlier this year. In March, when Greece agreed its latest bailout with its lenders, it predicted the economy would shrink by 4.8%.
"Confirmation of the cuts will prompt more anger here, where almost one in four Greeks are now unemployed, a record high," said the BBC's Mark Lowen in Athens.
"The aim is to return the country to what's called a primary surplus, so the only deficit Greece would face would be due to the interest it's paying on its debt. More cuts are likely to come in 2014."
The three parties in government reached a "basic agreement" on the austerity package for 2013-14 only last week - which came after 50,000 anti-austerity protesters took to the streets of Athens.
The Greek government hopes to be able to present a final package of measures to the summit of eurozone finance ministers on 8 October.
Greece received a bailout of 110bn euros in 2010 and 130bn euros earlier this year.
In recent months, concerns that Spain and Italy may need bailouts have eclipsed concerns over Greece and whether it can cut spending enough to remain in the euro.

COPY :  www.bbc.co.uk

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