April 9, 2014

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IMF Predicts That Greece Will Return To Growth in 2014

Greece is apparently going to return to growth this year and our nation is set on achieving a stronger economic growth rate in 2015, according to the International Monetary Fund.

In its World Economic Outlook, released on Tuesday, the IMF said that the Greek economy was projected to grow by 0.6 pct in 2014 and by 2.9 pct in 2015, while unemployment was expected to fall to 26.3 pct this year and to 24.4 pct in 2015. The IMF, however, expects low inflation rates to continue, with the rate at some 0.4 pct in 2014 and 0.3 pct in 2015.

In the six-month report, the IMF also said it expected inflation rates in the Eurozone to fall far below goals set by the European Central Bank and asked "bolder action" on the matter.

Olivier Blanchard, head of economic research in the IMF, presenting the report was quoted as saying that the German economy is definately going to be stronger than expected, with a growth rate of 1.7 pct in 2014 and noted that for the first time in the last two years, problematic economies in the European south will have a "low, but stable growth rate". The economist also pointed out that austerity measures imposed by some governments with the aim to reduce their spending "have been relaxed" while investors were "less concerned" about the possibility of a default in the these countries. He added that banks were "gradually strengthened".

The state news agency quoted Blanchard as stressing that there were still risks for the global economy and noted that an important risk was the problem of an uneven distribution of wealth.

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