The European Commission has announced its revised its estimations about the rate of recession in Greece in 2013, from 4.2% to 4%. The Commission also estimates that the Greek GDP will increase by 0.6% in 2014 and that unemployment will reach 27%.
According to the EC’s revise autumn estimations, the 4% recession in 2013 will give way to a 0.6% growth rate in 2014 and 2.9% in 2015. Unemployment will reach 27% in 2013 and is expected to fall to 26% in 2014 and 24% in 2015.
Regarding the deficit, the European Commission has predicted a 4% rate for 2013, without taking into consideration the extensive recapitalization of the systemic banks. Inclusive of the bank refinancing, the rate was found to be 13.5% GDP. For 2014 the deficit will drop to 2% and in 2015% it will be 1.1%.
The European Commission clarified that these predictions are based on the assumption that all gaps for 2014 and 201 will be covered by measures agreed upon with the troika during the scheduled reviews.
