IOBE: Escalation of recession and unemployment

IOBE: Escalation of recession and unemployment

Athens, April 14, 2016/Independent Balkan News Agency

By Spiros Sideris

Small scale recession and increase of unemployment forecasts the Foundation for Economic and Industrial Research (IOBE) for 2016, according to its quarterly report, which was presented Wednesday at a press conference.

In particular, the recession will escalate at 1% for 2016, said the general director of IOBE Nikos Vettas, while unemployment will rise to 25.2% (24.9% in 2015).

As IOBE estimates, however, in the second half of the year, provided that the evaluation will have a positive conclusion, the economy will return to positive growth, but will not be able to positively affect the GDP growth rate for the entire 2016.

This however will lay the foundations for a positive dynamics of growth in the coming years.

According to estimates of IOBE, further strengthening in Tourism will be small, while there will be a decline in Manufacturing.

IOBE estimates zero inflation or slight fall in prices for this year.

Stock Exchange: At 548.83 points with a drop of 0.83%

A small drop was recorded in stock prices at the meeting, against the positive sentiment in European markets, with investors appearing cautious due to the uncertainty regarding the progress of the assessment of the Greek economy, after the breakdown of negotiations between the government and lenders.

The market fell below the 550 points level, for the first time after the meeting of March 22, 2016.

Bank shares were pressured, while support in the market gave the shares of Coca Cola HBC, Motor Oil, OTE and PPC.

The General Price Index closed at 548.83 points, down by 0.83%.