The governor of the Bank of Greece's is expected to present worse-than-expected forecasts today over economic developments in the country for 2012 and recommend faster implementation of reforms for the return of the economy to a growth course by 2013. According to sources, the bank's annual report on monetary policy is expected to forecast that economic recession will surpass 4.5 pct this year, while unemployment was projected to surpass 19 pct, from 17.7 pct in 2011. The same sources said that George Provopoulos, the central banker, will recommend faster implementation of reforms and adopting a national strategy to lead the economy back to growth in 2013. The central banker believes that the first positive steps have been made already, such as completion of PSI and a recapitalization of banks. The Bank of Greece will stress that the economy is at a crucial turning point and underline the necessity to stick to the commitments resulting from a new loan agreement. The report will also underline that policies implemented in the past two years fell short of original targets mainly because of a deeper-than-expected recession in the country. Provopoulos will stress that if the current program was fully implemented, the economy will manage to return to a growth course.
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