Greek Economy Expected To Grow By 2.5 percent In 2015

The European Commission on Thursday downgraded its initial growth forecasts for Athens noting that the Greek economy would grow by 2.5 percent in 2015 from a previously predicted 2.9 percent figure that was projected last November. On account of all the measures taken by the previous coalition government, which at times were extremely harsh, and the sacrifices that were made by the Greek people, the Hellenic Republic can now proudly say that it will return to 3.6 percent growth in 2016.

In its full 180-page report, the commission said its projections were based on a full completion of Greece’s current bailout program - which the SYRIZA government has vowed to scrap- and warned that economic growth could once again be affected by continued political turmoil.

     "Uncertainty on the direction of policies is affecting confidence and may dent the speed of the recovery," it said.

In the report it is noted that economic growth in the Eurozone is projected to reach 0.8 pct in 2014, 1.3 pct in 2015 and 1.9 pct in 2016, while for the EU is projected economic growth rates of 1.3 pct in 2014, 1.7 pct in 2015 and 2.1 pct in 2016.

The unemployment rate is expected to fall from 26.6 pct in 2014 to 25 pct in 2015 and 22 pct in 2016 in Greece, while in the Eurozone the unemployment rate is projected to fall from 11.6 pct in 2014 to 11.2 pct this year and 10.6 pct in 2016.

Greece's fiscal deficit is set to reach -2.5 pct of GDP in 2014 and to return to surplus of 1.1 pct in 2015 and 1.6 pct in 2016. The country's public debt, on the other, is set to drop from 176.3 pct of GDP in 2014 to 170.2 pct this year and to 159.2 pct in 2015, while the inflation rate is projected to ease from -1.4 pct in 2014 to -0.3 pct this year and to return to positive ground (0.7 pct) in 2016.

(Editor's Comment: And all this... After six years of recession... This is important to note because some of our readers have questioned the work of the previous conservative government, but if they checked the figures in May 2012 and compared them with the figures today, then they would see that all these sacrifices are starting to pay off. Let us hope that the new government does not set us back.)