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Greece predicts sixth year of recession in 2013 | Greece predicts sixth year of recession in 2013 |
(35 minutes later) | |
Greece is predicting that its economy will shrink for a sixth year in 2013 as it continues to feel the effects of austerity measures. | Greece is predicting that its economy will shrink for a sixth year in 2013 as it continues to feel the effects of austerity measures. |
The economy will contract by 3.8% next year, it said in a draft budget submitted to parliament. | The economy will contract by 3.8% next year, it said in a draft budget submitted to parliament. |
Greece also predicts its economy will shrink by 6.5% this year, worse than a previous estimate of 4.8%. | Greece also predicts its economy will shrink by 6.5% this year, worse than a previous estimate of 4.8%. |
About 8bn euros worth of cuts have been proposed for 2013, covering public-sector pay, pensions and welfare. | About 8bn euros worth of cuts have been proposed for 2013, covering public-sector pay, pensions and welfare. |
The cuts are necessary if Greece is to get the next instalment of the funds from the IMF and eurozone that bailed it out - again - earlier this year. In March, when Greece agreed its latest bailout with its lenders, it predicted the economy would shrink by 4.8%. | The cuts are necessary if Greece is to get the next instalment of the funds from the IMF and eurozone that bailed it out - again - earlier this year. In March, when Greece agreed its latest bailout with its lenders, it predicted the economy would shrink by 4.8%. |
"Confirmation of the cuts will prompt more anger here, where almost one in four Greeks are now unemployed, a record high," said the BBC's Mark Lowen in Athens. | "Confirmation of the cuts will prompt more anger here, where almost one in four Greeks are now unemployed, a record high," said the BBC's Mark Lowen in Athens. |
"The aim is to return the country to what's called a primary surplus, so the only deficit Greece would face would be due to the interest it's paying on its debt. More cuts are likely to come in 2014." | "The aim is to return the country to what's called a primary surplus, so the only deficit Greece would face would be due to the interest it's paying on its debt. More cuts are likely to come in 2014." |
The three parties in government reached a "basic agreement" on the austerity package for 2013-14 only last week - which came after 50,000 anti-austerity protesters took to the streets of Athens. | The three parties in government reached a "basic agreement" on the austerity package for 2013-14 only last week - which came after 50,000 anti-austerity protesters took to the streets of Athens. |
The Greek government hopes to be able to present a final package of measures to the summit of eurozone finance ministers on 8 October. | The Greek government hopes to be able to present a final package of measures to the summit of eurozone finance ministers on 8 October. |
Greece received a bailout of 110bn euros in 2010 and 130bn euros earlier this year. | Greece received a bailout of 110bn euros in 2010 and 130bn euros earlier this year. |
In recent months, concerns that Spain and Italy may need bailouts have eclipsed concerns over Greece and whether it can cut spending enough to remain in the euro. | In recent months, concerns that Spain and Italy may need bailouts have eclipsed concerns over Greece and whether it can cut spending enough to remain in the euro. |
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