Greece: Recession to exceed 9 pct in Q3

Πηγή: ekathimerini
By Sotiris Nikas
June 27 2012

Yet another gloomy forecast on the Greek recession was published on Tuesday as the Center of Planning and Economic Research (KEPE) estimated that the economy will contract by 6.7 percent this year, while the rate is seen climbing as high as 9.14 percent in the July-September period.

The official contraction rate in the 2012 budget stands at 4.7 percent, but the government and its official creditors already expect gross domestic product to shrink by 6 to 7 percent this year after a 7 percent contraction in 2011.

Sources suggest that the new government is considering using the new recession estimates as a bargaining chip in its effort to point out the problems in the budget’s execution and request an easing of the austerity conditions imposed in Greece. However, this may also entail pressure for extra measures by Athens to meet its fiscal targets.

KEPE has calculated contractions of 6.87 percent for the second-quarter and 4.25 percent in the year’s last three months.