Greek Financial Ministe: Economy Resistant to Crisis

The Greek economy is showing stronger resistance to pressure from the ongoing global economic crisis, Economy and Finance Minister Yiannis Papathanassiou stressed on Monday. Commenting on the European Commission’s (EC) spring economic forecasts, the minister said the Commission cut forecasts over economic growth in the Eurozone and the EU, noting that Greece – although projected to present a negative growth rate this year – was showing stronger resistance compared with other eurozone countries. 
Papathanassiou stressed that the EC’s forecast for Greece does not take into account recent government steps aimed at boosting the economy. The EC’s forecast predicts that the Greek economy will present a negative growth rate of 0.9% in 2009 – compared with other countries where the economy was expected to shrink by 4.0% – before recovering to a growth rate of 0.1% in 2010.

The finance ministry is more optimistic and is sticking to its anticipated expansion rate of 1.1% for this year, emphasising that “the Commission’s latest forecasts have not taken into account recent measures taken by the government to support economic growth, such as measures to boost construction activity, the car market and employment,” said the minister. 
In any case, Papathanassiou said, the government would re-evaluate economic progress in June and if needed, would make any necessary adjustments to achieve its budget targets. 
European Commission: Economic Forecast Spring 2009 – Greece ; Athens News Agency: Negative growth in 2009; Ministry of Economy and Finance: Statements by Finance Minister Yiannis Papathansiou on EC’s forecast (May 4, in Greek)