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> Economy

Greek economy is back to recession

The unemployment rate is projected to rise to 25.8% in 2016, according to European Commission

Newsroom November 5 01:23

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Greece will remain in recession for another two years, as European Commission says in its report for the Greek economy.

Greece’s economy is projected to slip back into recession in 2015” due to ‘heightened uncertainty and the introduction of capital controls”, says the report, while Greek economy is expected to return to positive growth rates (2.7%) in 2017.

More specifically, the unemployment rate is projected to rise to 25.8% in 2016, from 25.7% this year and to fall to 24.4% of the workforce in 2017.

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Greece’s fiscal deficit is expected to rise to -4.6% of GDP this year, falling again to -3.6% in 2016 and -2.2% in 2017. However, Greek public debt is projected to rise to 194.8% of GDP this year, rising to 199.7% in 2016 and falling to 195.6% in 2017.

The country will remain in a deflation rate this year (-1.0%), whereas it will return to positive rates (1.0%) in 2016 and 0.9% in 2017. Investments are projected to shrink further (-10.2% this year, -2.0% in 2016) before rising again in 2017 (14.7%).

Read the full report, here.

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