(GREEK NEWS AGENDA) In the wake of the informal meeting of the Heads of State and Government of the European Union on November 7 in Brussels, the European Commission issued its autumn economic forecast 2008-2010 yesterday, revealing the gloomy influence of the financial crisis on the European economies. According to the data, economic growth rates for the European Union should be 1.4% in 2008 (1.2% for the eurozone), half what it was in 2007, and drop even more sharply in 2009 at 0.2% (0.1% for the eurozone). Greece’s growth rate remains resilient, topping all Eurozone economies’ GDP growth. Greece’s growth rate for 2008 is estimated at 3.1% in 2008 dropping by 0.9% since 2007, all due to a slump in private consumption and a decline in corporate investment, according to the European Commission. For 2009, predictions foresee a drop at 2.5% and 2.6% at 2010.
Greek Public Budget Balance
In terms of the country’s fiscal deficit, it was 3.5% of GDP in 2007 and was expected to fall to 2.5% (2008). The Commission’s forecast shows that it is expected to fall to 2.2% in 2009 only to rise again to 3% in 2010.
Inflation in Greece
After its soaring 2008 levels, inflation will fall to 2.5% in 2009 for the European Union and 3.5% in Greece. In 2010, it will succumb even further with 2.2% in the EU and 3.3% in Greece. European Commission: Forecasts for member states- Greece