Financial misery blows: Greece slips back into recession – n-tv.de NEWS

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 Wednesday, May 13, 2015

 
 
 

 
 Another setback for Greece: The delicate economic growth plantlets is trampled, the bankrupt country is back in recession. The continuing debt dispute is undermining the recovery.
 

 
 

The stalemate in debt dispute has pushed the Greek economy back into recession. Gross domestic product shrank from January to March by 0.2 percent the previous quarter, as the Greek Statistical Office in Athens told. The end of 2014, economic output was even dropped by 0.4 percent. Two minus consecutive quarters economists speak of a recession

On the economic misery due to lack of investment and the dispute with the international donors are increasingly joined also internal political strife. Hundreds mayor oppose a government call and want make the damp state no money available.

“The mood in the companies has deteriorated since the negotiations between the government and international donors have still found no end,” said economist Nikos Maggina of the Greek National Bank. Thus, the risk of sovereign default and a euro departure remains acute, which is why companies withhold from uncertainty with investment

The Greek economy grew last year after years of crisis for the first time. The gross domestic product rose by 0.8 percent , The continuing debt dispute is undermining the recovery. The European Commission expects for this year an economic growth of only 0.5 instead of 2.5 per cent so far.

Greece threatened with insolvency. The disbursement of 7.2 billion euros from the current assistance program depends on an agreement between the government in Athens with the Euro-partners about the course of reform.

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And the situation threatens to sharpen: Only two of the 325 mayors presented the government as called surplus funds available, said the head of the Union of Municipalities (KEDE) , Giorgos Patoulis. They feared not recover the funds.

So far, the government has about 600 million euros driven at different levels of government to finance its ongoing obligations. The government had, however, hoped to EUR 2.5 billion.

Just recently they had seized to repay a loan from the International Monetary Fund in their bag of tricks and according to government sources subtracted much of the money from a separate IMF account. But that account must therefore in a few weeks are filled.

  Source: n-tv.de
 

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