Sputnik – According to a Friday statement from the finance ministry, the final economic forecasts are more optimistic and there will be no contraction in 2015.
The preliminary draft budget had estimated a contraction of 2.3 percent in 2015.
“The Greek economy endured, disproving disaster scenarios,” the Greek finance ministry said in its Friday statement, forecasting that the economy will contract by only (!) 0.7 percent next year.
However Greece’s final 2016 budget draft stipulates €5.7 billion in additional spending cuts and tax increases in 2015-2016.
In July, Greece’s international creditors signed an agreement with the country’s government, approving a third bailout package for Athens worth €86 billion in exchange for highly unpopular austerity reforms such as pension cuts and tax hikes.
Parliament will vote on the budget on 5 December.
