Greek Budget Predicts Economy Will Shrink for Sixth Year
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Greece’s economy will contract for a sixth year in 2013 as the government prepares further cuts to pensions, wages and social benefits to meet the terms of its bailout packages.
Gross domestic product will shrink 3.8 percent next year after contracting 6.5 percent in 2012, according to the 2013 draft budget, e-mailed by the Finance Ministry in Athens and submitted to parliament today. This compares with a prediction in Greece’s March rescue agreement with the European Union and the International Monetary Fund that the economy would contract 4.8 percent this year before stabilizing in 2013.