Greek jobless rate to fall to 26 pct in 2014, in first drop since 2008, IOBE forecasts

IOBE, in a quarterly report on the Greek economy, attributed an expected decline in unemployment to a rising investment activity, higher exports and reforms in the labour market in the last two years. It also expects a decline in rising employment in the pubilc sector due to a restructuring program (around 10,000 dismissals are projected this

year).
IOBE said that Greece will remain in a deflation trend (-0.3 pct in 2014 from -0.9 pct in 2013) and projected that the Greek economy will shrink by 4.0 pct in 2013 before stabilizing this year. IOBE said that it did not exclude the possibility of a new small decline in the country’s Gross Domestic Product in 2014.
Professor Nikos Vettas, director general of IOBE, said the government should take advantage of a primary surplus signalling a policy towards a prudent fiscal policy with a systematic gradual reduction of the country’s deficits. At the same time, the government should seek stable growth rates and the mobilization of its partners and creditors to implement debt restructuring procedures.
A primary surplus by itself is not adequate to lead to a long-term solution and should not be used for purposes undermining growth and signalling a return to the past, Vettas noted. He underlined that the Europarliament elections and local elections could reignite political controversy and delay implementation of the necessary structural reforms in the country.

source: ΑΜΝΑ