FinMin: Evidence points clearly to lower recession this year

Addressing a conference, “Euromoney Greece Conference: Privatization and Investment Forum” with a speech on “Greece at the centre of international investment interest”, the Greek Finance minister said that besides the fact that a recession in the second quarter of 2013 fell to 3.8 percent (lower that initial estimates), the country’s Gross Domestic Product – based on seasonally corrected GDP figures – grew in the second quarter compared with the first quarter of the year, for the

first time since the beginning of the crisis. “For the first time we have estimates that GDP grew on a quarterly basis,” Stournaras said.

He sounded optimistic that Greece was on track towards economic recovery, helped by ensuring political and financial stability and fiscal consolidation. Stournaras noted that the government was expected to present a small primary budget surplus this year and stressed that a cyclically-corrected primary result has been improved by 20 pct of GDP since 2009.

Tourism is emerging as a determining factor for the country’s real economy, with tourism revenues up 22 pct in the first seven months of the year, while cruiseship passenger traffic at the port of Piraeus jumped 43 pct in August – a new six-year record. The Finance minister also noted that wage employment flows in the private sector remained positive since March this year, while the country is expected to present a balanced current account this year and in 2014.

Stournaras said that the government’s economic policy programme focused on speeding up a privatisation programme. He said the country has overcome past problems such as a complex regulatory framework or lack of political will, while a recapitalisation programme has fortified the country’s financial system which will can now play a leading role towards development and becoming a strong catalyst for capital placement by international fund management companies.

He said the government will launch significant tenders later this year to privatise large infrastructural projects, such as the ports of Piraeus and Thessaloniki – along with regional ports – and the Egnatia Road, the Athens International Airport, Hellenic Post, new groups of marinas, and so on, while the government also intends to develop spa and health tourism.

The Finance minister said the government expected that exploitation of all assets included in a privatisation programme – referring to infrastructure and corporate portfolio – will be completed by the end of 2014.

Source: AMNA