Minister: Greek Budget Sees End of Recession in 2014
Greece will emerge from a long recession next year with the economy growing by 0.6 percent, the draft budget presented by the government showed on Monday.
"We foresee the end of recession in 2014," Vice Finance Minister Christos Staikouras said.
The Greek economy, currently in a sixth year of recession, is expected to contract by 4.0 percent this year.
"The sacrifices the Greek people have made after a painful period are bearing fruit, we have the indications of exiting the crisis in 2014," he said.
The draft budget also foresees a surplus excluding debt service charges of 2.8 billion euros ($3.8 billion) or 1.6 percent of GDP. Greece is in line this year to generate its first so-called primary budget surplus, of 340 million euros, he added.
Generating a primary budget surplus is essential for Greece if it wants to discuss easing its debt burden with its international creditors, the European Union and International Monetary Fund, according to the 2012 bailout agreement.
Greece was first bailed out for 110 billion euros in 2010 but when that failed, got a second rescue in 2012 worth 130 billion euros plus a private sector debt write-off totaling more than 100 billion euros.
Despite the write-off, the country's debt is expected to weigh in at 319.4 billion euros next year, or 174.5 percent of gross domestic product.
The budget also foresees the unemployment rate dipping to 26 percent in 2014, from 27 percent this year. The unemployment rate hit 27.6 percent in June.
The draft budget, which was discussed with auditors from the EU, IMF and European Central Bank during their visit to Athens last month, was submitted to parliament on Monday.
A final debate and vote on the budget is expected sometime next month.
The government is keen to avoid having to adopt new austerity measures despite a financing gap in 2014 estimated at roughly 10 billion euros.
The coalition government led by Prime Minister Antonis Samaras believes that further tax rises and spending cuts could further destabilize the country politically and socially.
The eurozone country is regularly beset by strikes.
Source: Agence France Presse
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