ATHENS -- Greece may be bracing for a recession far worse than the official forecast, a Greek think tank said Monday, with the contraction expected at 5% or more in 2012.
The Foundation for Economic and Industrial Research, also known as IOBE, appeared more pessimistic than the country's international creditors, while presenting its quarterly review.
The International Monetary Fund expects a gross domestic product contraction of 4.8% this year.
"A conservative estimate is that there will be a 5% contraction during 2012," said Aggelos Tsakanikas, head of research at IOBE.
The report also saw unemployment rising further, to 20% this year, up from a 17.3%% in 2011.
Inflation is expected to ease to levels below 1% from 3.1% last year as demand continues to weaken.
"Recession is going to be quite intense this year as well," said IOBE head Yannis Stournaras, adding that the country should pick up the pace of its long- awaited privatization program.
In March, Greece completed much of a planned EUR206 billion debt restructuring plan, which was part of a new EUR130 billion bailout agreed to by the country's European partners and the IMF in March.
Greece's caretaker government aims to pass the final pieces of legislation-- that are a precondition for the new bailout--by mid April and pave the way for national elections thereafter.
But the new government will have to announce some EUR11 billion in further austerity measures by June, to cover expected budget gaps in 2013 and 2014.
nasdaq.com
The Foundation for Economic and Industrial Research, also known as IOBE, appeared more pessimistic than the country's international creditors, while presenting its quarterly review.
The International Monetary Fund expects a gross domestic product contraction of 4.8% this year.
"A conservative estimate is that there will be a 5% contraction during 2012," said Aggelos Tsakanikas, head of research at IOBE.
The report also saw unemployment rising further, to 20% this year, up from a 17.3%% in 2011.
Inflation is expected to ease to levels below 1% from 3.1% last year as demand continues to weaken.
"Recession is going to be quite intense this year as well," said IOBE head Yannis Stournaras, adding that the country should pick up the pace of its long- awaited privatization program.
In March, Greece completed much of a planned EUR206 billion debt restructuring plan, which was part of a new EUR130 billion bailout agreed to by the country's European partners and the IMF in March.
Greece's caretaker government aims to pass the final pieces of legislation-- that are a precondition for the new bailout--by mid April and pave the way for national elections thereafter.
But the new government will have to announce some EUR11 billion in further austerity measures by June, to cover expected budget gaps in 2013 and 2014.
nasdaq.com
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