eKathimerini — Swiss bank UBS noted a clear deterioration in the Greek economy, saying that in contrast to what it terms as “optimistic” forecasts by the European Commission and the International Monetary Fund, the economic contraction in Greece this year will amount to 0.9 percent.
In its report issued on Wednesday the lender noted that the latest financial data (showing GDP shrinking 1.4 percent in the first quarter) confirm its view that pressure on the Greek economy in the first half of the year will be strong, mainly burdening consumers due to the continuing austerity.
In a separate report, the Organization for Economic Cooperation and Development (OECD) forecast a 0.2 percent contraction of the Greek economy this year, but undercut the recovery that the eurozone anticipates for Greece (2.7 percent) in 2017, saying the rebound will only amount to 1.9 percent.
“More reforms are required for the economy to swing toward exports and new enterprises,” the OECD report said, adding that reducing bureaucratic procedures and burdens on enterprises will raise productivity and investments.
