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Greece - Economy & Statistics
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Greek budget sees zero growth in 2010, government official says

Lefteris Papadimas - 05.11.2009

Greece's draft budget foresees flat economic growth next year, with the budget deficit narrowing to 9%-10% of gross domestic product (GDP), a senior finance ministry official told Reuters.

After years of robust growth, Greece is seen slipping into recession this year as key drivers such as tourism are hit hard by the global economic crisis. The European Union's executive Commission sees it lagging behind most other euro zone members on the path to recovery.

"GDP growth will be at about 0% in 2010 and the deficit will be between 9% and 10%," the ministry official said ahead of the Nov.5 publication of the budget.

Greece's new socialist government was elected on Oct.4 on a pledge to tax the rich to help the poor, and inject about 2.5 billion euros into the economy, while taking radical steps to reduce the ballooning deficit.

The country needs to convince fellow EU members and markets that it is serious about curbing deficits, and the 2010 budget is a key test. Rating agencies have said they would look at it very closely.

In October the new government more than doubled the country's deficit forecast for 2009 to 12.5% and said growth would drop by about 1.5%.

The EC sees Greece's economic growth contracting by 0.3% next year and the deficit at 12.2% of GDP, which would make Greece one of only three euro zone countries without positive growth next year.

Source: Reuters, Balkans.com Business News

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[Financial Services, Economy & Statistics] EU finance ministers will call on Greece to fix its statistics 18.01.2010. - Jan Strupczewski in Brussels

[Financial Services, Economy & Statistics] IMF would not be right body for Greek aid, IMF chief says 15.01.2010. - James Mackenzie in Paris

[Energy & Utilities, Economy & Statistics, Capital markets] Greek PPC's new business plan to be ready in spring 18.01.2010. - Harry Papachristou

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