Sharp fall in growth as pension and salary cuts take effect

Greece

The latest figures for the Greek economy show that it is on course for a 4% fall in output this year while unemployment has risen sharply from 8.5% last year to 12.5% in May this year (the latest figures). However, the International Monetary Fund (IMF) believes that government reforms are on track. The IMF acknowledges that: “Employees and pensioners have contributed to the program in a major way by accepting painful reductions in wages and pensions.” However, the burden is not being equally shared as the IMF admits that: “It is absolutely vital to ensure that all other elements of Greek society also pay their fair share. This means, for example, acting aggressively to improve tax collection and the enforcement of taxation legislation—particularly to reduce tax evasion by high-income and wealthy individuals.“
Read more at > IMF (EN)

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