Wednesday, April 25, 2012
Bank of Greece Governor George Provopoulos presented his Annual Report on the Greek Economy at the 79th annual meeting of shareholders, on April 24. The new adjustment programme, the report states, provides more favourable conditions than previously, but the exit from the crisis will depend exclusively on the country’s willingness and ability to rise to the historic challenge. 
According to the Report, the available short-term indicators for the first quarter of 2012 suggest that the recession will continue this year, to an average annual rate of decline in GDP of close to 5% -less pronounced than in 2011- provided however that the necessary structural reforms will be implemented without delay. The average unemployment rate is projected to increase this year and exceed 19%, up from 17.7% last year. The current account deficit is projected to decrease from 9.8% of GDP in 2011 to roughly 7.5% of GDP in 2012 and this downward trend will continue in the years to come.
The downward trend in inflation will also continue in 2012, with average annual inflation expected to be around 1.2%. In 2013 inflation is projected to fall further, possibly to below 0.5%.
