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Greece Business Forecast Report Q1 2014

Greece economy forecast to return to positive growth in 2014


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2014-01-09 09:34:02 - Greece Business Forecast Report Q1 2014 - a new country guide report on companiesandmarkets.com

We expect a return to positive economic growth in 2014 following six years of depression.

The prospect of further spending cuts and tax hikes will ensure that demonstrations and national strikes remain a key feature of the political landscape over the medium term.

The current account deficit has collapsed faster than we had expected, raising the prospect of a return to surplus over the medium term.

This is symbolic of Greece´s transition towards a more balanced and sustainable economic growth model.

Upside Risks To Deficit Forecasts: The severity of the fiscal consolidation programme and the public backlash mean that the scope for slippage will remain pronounced.

Downside Risks To Economic Growth Forecasts: A fragile recovery in the eurozone could yet go in reverse unless policymakers

 

 

push forward with structural reforms and the ECB provides additional monetary stimulus. A failure to do so would risk prolonged stagnation in the euro area, which will in turn dent demand for Greek exports and further undermine the recovery.

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