Ravaged by years of debt, austerity and violent protests against hardline economic policies, Greece will finally exit a seven-year recession in 2014, the EU said Wednesday.
As bailed-out Greece prepares for a crucial vote on yet more austerity measures, the European Commission’s Autumn forecasts said Athens would be able to celebrate 0.6-percent growth in 2014, with the economy having shrunk by around a fifth since the crisis first broke.
“The turning point of the recession is expected in the second half of 2013, leading to moderate growth of 0.6 percent in 2014,” the 200-page forecast said.
The figure shows the European Union tipping a far bigger growth spurt than even the Greek government foresees in Athens, which last week pegged anticipated growth of 0.2 percent in 2014, rising to 2.5 percent in 2015 and 3.5 percent come 2016.
However, the EU cautioned that the projection relied on the expected return of confidence and investment which in turn would be conditioned by effective economic reforms as well as progress in big infrastructure projects co-financed with bloc-wide funds.
“The recovery rests on the crucial assumption of timely and rigorous implementation of the adjustment programme,” the report said, referring to reforms agreed with Athens in return for bailout funds.
It said the current recession was due to a shrinkage of disposable income caused by unemployment, this year at 23.6 percent, as well as government spending cuts, a sleepy investment climate and falling demand for Greek exports.
Greece to exit seven-year recession in 2014: EU
