eu slashes greece growth outlook
Last Updated : GMT 13:03:42
Arab Today, arab today
Arab Today, arab today

EU slashes Greece growth outlook

Arab Today, arab today

Arab Today, arab today EU slashes Greece growth outlook

The European Commission has slashed
Brussels - AFP

The EU on Tuesday sharply slashed its growth outlook for Greece this year due to its ongoing battle with its international creditors, dampening an otherwise improved outlook for the eurozone.

The Greek economy slumped severely in the first three months of the year, the European Commission said in its Spring forecasts, cutting its overall 2015 growth outlook for Greece to 0.5 percent, a huge reduction from its earlier prediction of 2.5 percent.

The sharp downturn in the state of the Greece economy will heap even more pressure on the radical leftist government of premier Alexis Tsipras to come to terms with its EU-IMF creditors, who are demanding radical reforms that Athens is so far refusing.

"In light of the persistent uncertainty, a downward revision has been unavoidable" for Greece, Pierre Moscovici, the EU's Economic Affairs Commissioner, told a news conference.

The EU predicted a strong rebound of 2.5 percent in 2016 for Greece but stressed that all its predictions were based on the assumption that Athens would reach a deal with its creditors when the extension of its current international bailout runs out at the end of June.

Greece's debt, already the highest in the eurozone, would meanwhile soar to 180.2 percent of annual economic output this year, before falling slightly to 173.5 percent in 2016, the EU said.

- 'Brightest spring' -
For the rest of the eurozone, cheaper oil and a weak euro led the EU executive to predict that the currency bloc would grow 1.5 percent in 2015, better than the 1.3 percent predicted in February.

"The European economy is enjoying its brightest spring in several years, with the upturn supported by both external factors and policy measures that are beginning to bear fruit," said Moscovici, a former French finance minister.

"But more needs to be done to ensure this recovery is more than a seasonal phenomenon."

The Commission forecast that the currency bloc would avoid much feared deflation this year, with consumer prices rising an albeit low 0.1 percent in 2015, and then gaining momentum to 1.5 percent in 2016.

Deflation can be dangerous, risking to trigger a spiral of ever weaker demand, slowing the economy and pushing up unemployment.

The inflation data helps confirm that an unprecedented bout of monetary stimulus -- known as quantitative easing -- by the European Central Bank was taking effect despite the objections of powerful Germany.

Greece's Tsipras government came to power in late January and has been at loggerheads with the EU and IMF ever since, holding up bailout cash and putting its economy on the brink of collapse.

Most worryingly, the EU predicted that the Greek public deficit would stand at 2.1 percent this year, instead of a surplus.

Running a budget surplus is the key condition from the EU and IMF for the Greek bailout.

The EU data also said inflation in Greece had collapsed deep into deflationary territory, at negative 1.5 percent for 2015, down from negative 0.3 predicted three months ago.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

eu slashes greece growth outlook eu slashes greece growth outlook

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

eu slashes greece growth outlook eu slashes greece growth outlook

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today The Big Apple bike boom

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Leaders of Russia, Iran, Turkey meet

GMT 10:12 2017 Wednesday ,22 November

Leaders of Russia, Iran, Turkey meet
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 13:41 2017 Tuesday ,21 November

French choke up over proposal

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday