Brussels sees smaller GDP contraction in Greece

Brussels sees smaller GDP contraction in Greece

 

The spring estimates on European economies issued on Friday by the European Commission point to an improved condition in Greek economy that will shrink by 4.2 percent this year against an original forecast for a 4.4 percent contraction, against a deteriorating background in the eurozone.

Greece will return to growth next year with its economy expanding by an estimated 0.6 percent.

Gross domestic product in the euro area will fall 0.4 percent this year, compared with a February prediction of a 0.3 percent, Brussels estimated. This follows a 0.6 percent contraction in 2012 and shows the region is heading for its first ever back-to-back years of falling output.