Greek Economy to Shrink Further in 2012, Research Group Reports
Greece’s economy will contract further this year as austerity measures curb domestic demand, the Athens-based Foundation for Economic and Industrial Research said.
Exports also may decline as growth and demand worldwide falter and unemployment may reach around 20 percent after rising in December to a record 21 percent and 51 percent among younger people, the IOBE said in the e-mailed report.
Greece is now in its fifth year of recession. Austerity measures adopted as part of a deal to obtain international financial aid include property taxes paid through electricity bills, an additional 12 percent cut in pensions and salaries for state workers this year and a 22 percent reduction in the minimum wage to 638 euros ($850) a month.
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