As Prime Minister Antonis Samaras said the country’s economy could begin to rebound within a year, there are signs it’s getting worse for now. The leading think tank the Foundation for Economic and Industrial Research (IOBE,) which produced Finance Minister Yiannis Stournaras, said the economy will shrink 4.6 percent this year and unemployment will average a record 27.6 percent.
Presenting its quarterly report on the Greek economy, IOBE expressed concern about the focus of negotiations between the coalition and international lenders pushing for more reforms in return for bailouts. IOBE said that the emphasis was on securing the next bailout installment and not creating prospects for growth.
IOBE also criticized the government’s failure to shrink the size of the public workforce and fire disciplinary problems, including those who have falsified credentials, don’t show up for work or even committed felonies but are still employed.
It also also expressed concerns about the impact that an imminent recession in Cyprus, one of the key importers of Greek goods, will have on the Greek economy. The foundation said that Greece would experience zero inflation this year.
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