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Home Economics

Greece can not get out of the recession

by Daniel Brown
2014/08/15
in Economics, HOME
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Greece can not get out of the recession
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Greece’s economy in the II quarter decreased by 0.2% compared with the same period last year, according to the Greek Statistical Office.

The fall in GDP continues the 24th consecutive quarter, but slowed significantly in January-March was less pronounced than expected by experts, reports Bloomberg.

The revised data showed a drop in GDP for the I quarter was revised from 0.9% to 1.1%. In April-June was supposed to drop by 0.5%.

According to the forecasts of the authorities of the EU, Greece’s economy was to resume its growth for the first time since 2008, however, the Greek officials acknowledge that the negative effect of the Ukrainian crisis and the response of Russia may put an end to these projections.

According to official forecasts of the European Commission was expected that by the end of 2014 Greece’s GDP will grow by 0.6%. In case if this prediction came true, for the Greek economy, this would mean a way out of a prolonged recession, which stretches from the III quarter of 2008

However, these hopes, not likely to materialize. In Greece, note that the Ukrainian crisis caused extensive damage to tourism and agriculture of the country. In this case, the energy security of the country in question against the background of a possible Ukrainian gas transit stop.

Tags: Greece
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