ΙΟΒΕ: Recession in Greece will be milder than originally predicted this year

Recession in Greece will be milder than originally predicted this year and growth in 2017 will be slower than that forecast by the government and Greece’s creditors, the Foundation for Economic & Industrial Research (IOBE), a Greek think tank, said in his tri-monthly report on the economy on Tuesday.

IOBE said Greek GDP will shrink by 0.5 percent in 2016 versus a forecast for a one percent recession, mainly due to a rebound in private consumption in the second half of the year and an increase in investments.

For next year, the foundation sees a 1.5-2.0 percent growth as a result of an increase in private consumption and a gradual drop in unemployment, a boost in investments and the expected settlement of non-performing loans (NPLs). Concerning unemployment, IOBE expects it to drop to 22.5 percent next year.