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Sixth year of recession looms for Greece

Monday 01 October 2012 18:15 EDT
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The Greek government expects a sixth year of recession, with the economy predicted to contract by 3.8 per cent in 2013, according to a draft budget submitted to parliament yesterday.

This year the economy is expected to shrink by around 6.5 per cent. Unemployment, meanwhile, is predicted to rise to 24.7 per cent in 2013 from an average 23.5 per cent in 2012.

Underscoring the country's woes, the budget sees Greece's government still running at a loss despite waves of spending cuts and tax rises over the past two years as it implements the reforms demanded by its international lenders. The cuts have sparked widespread social unrest and triggered a series of strikes in Athens.

AP

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