Greek economy to shrink 5 pct in 2012-cenbank chief

ATHENS, April 24 Tue Apr 24, 2012 5:11am EDT

Related Topics

ATHENS, April 24 (Reuters) - Greece's economy will contract by a steeper-than-expected 5 percent this year, the country's central bank chief said in a speech to the bank's shareholders on Tuesday.

The central bank in March had forecast a 4.5 percent contraction in the economy this year.

Bank of Greece chief George Provopoulos said the country must stick to its reform and fiscal adjustment commitments under a bailout plan agreed with its euro zone partners and the IMF to return the economy to growth.

He also warned that the country's membership in the euro zone was at stake if it failed to follow through on its pledges to reform, especially after national elections on May 6.

"If following the election doubts emerge about the new government and society's will to implement the programme, the current favourable prospects will reverse," he said.

He said the euro zone was set for a mild recession this year which could deepen if the debt crisis escalates.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video