Draft budget: Greek economy to grow by 0.6 pct in 2014

The Greek economy will grow by 0.6 pct while the general government will present a primary surplus of 2.8 billion euros in 2014, according to a draft budget plan presented by Alternate Finance Minister Christos Staikouras on Monday.

Under the budget provisions, the unemployment rate is expected to fall to 26 pct in 2014, while employment is expected to rise by 0.6 pct. The Greek economy will shrink by 4.0 pct this year, better than initial estimations, the unemployment rate will rise to 27 pct and the budget primary surplus will total 340 million euros in 2013. Staikouras said that sacrifices made by the Greek people are beginning to bring results and noted that the first evidence of exiting the crisis is visible.

According to the draft budget plan, the Greek economy will grow by 0.6 pct next year, while the primary surplus of the general government will totaled 2.8 billion euros, or 1.6 pct of GDP, up from a target of 1.5 pct of GDP, from a primary surplus of 344 million euros, or 0.2 pct of GDP in 2013.

The unemployment rate is expected to fall to 26 pct of the workforce next year, from 27 pct in 2013, while the public debt is projected to ease to 319.4 billion euros in 2014, from 321 billion euros this year.

Staikouras underlined that the general government’s deficit is expected to fall to 2.4 pct of GDP this year, from 6.0 pct in 2012, and to remain at 2.4 pct of GDP in 2014 as well.

The Greek minister stressed that Greece will seek actions from its partners in reducing the country’s public debt, according to an Ecofin meeting decisions reached last November. Staikouras said that the draft budget plan did not envisage the possibility of Greece exiting the capital markets in 2014, but stressed that Greek authorities intend to undertake a series of initiatives to facilitate the country’s exit to the markets in the second half of 2014.