13 April, 2011
"Greece is expected to see growth in 2012," the International Monetary Fund (IMF) forecasts in its April 2011 World Economic Outlook (WEO).
According to IMF’s report, the global economic recovery is gaining strength
, with world growth projected at about 4,5 % in both 2011 and 2012, but unemployment remains high, and risks of overheating are building in emerging market economies.
For Greece in particular, the IMF predicts that Real Gross Domestic Product will shrink by 3 % this year but it will grow by 1.1% in 2012, noting that despite the fact that the current account deficit remained high, there were signs of a turnout to the adjustment in 2010.
World Economic Outlook April 2011: Read the full text of the report here
Greece’s economic stability program was currently on the right track, but more time is needed to achieve fiscal restructuring, Carlo Cotareli, director of fiscal affairs in the International Monetary Fund said on Tuesday. Presenting the Fund’s report on the fiscal situation of global economy, Cotareli said that “Greece has offered more than expected in the spending leg”.
The IMF’s official said countries under market pressure (such as Greece, Ireland and Portugal) must be ready to adopt additional measures to meet commitments they took over in the framework of their stability programs.
The report said that the Greek fiscal deficit will fall to 7.4 pct of GDP this year and noted that despite the purchase of a significant part of Greek debt by the European Central Bank, figures showed that foreigners have sold Greek debt, part of which has been bought by non-financial Greek entities. Cotareli predicted that a recent increase in interest rates by ECB will not change the Fund’s forecasts.
Source: GREEK NEWS AGENDA issued by the Secretariat Genera