Greece Economic Forecast

For Greece, the economy is based on capitalism with the public sector being 40% of the Gross Domestic Product (GDP). Then for Euro zone economies, this country’s GDP per capita accounts for about 75%. Between the years 2003 to 2007 saw an economic growth of 4.00% in part due to infrastructural spending associated with the Olympic Games being hosted by Athens but also because of an increase of available credit. While this increase was sustained for some time, by 2008 a decrease of 2.8% occurred because of the global financial crisis, as well as restricted credit conditions.

For Greece, the economy is based on capitalism with the public sector being 40% of the Gross Domestic Product (GDP). Then for Euro zone economies, this country’s GDP per capita accounts for about 75%. Between the years 2003 to 2007 saw an economic growth of 4.00% in part due to infrastructural spending associated with the Olympic Games being hosted by Athens but also because of an increase of available credit. While this increase was sustained for some time, by 2008 a decrease of 2.8% occurred because of the global financial crisis, as well as restricted credit conditions. Additionally, this country violated the European Union Growth and Stability Pact’s criteria for budget deficit from 2001 to 2006 of no more than 3% of the GDP. However, during 2007 and 2008, this criterion was finally met. The government of this country plays a key role for domestic political issues, encouraging officials to consider cutting government spending, reforming the pension systems and workforce, and cutting the size of public sectors. Although several changes have led to decent improvement in economic growth, Greece still faces some long-term challenges.

Greece GDP Forecast

Because of an increase in tourism, improved credit, and more private sectors, the Greece GDP (Gross Domestic Product, Current Prices, US Dollar) was able to sustain during the global financial crisis from 2007 to 2009. Even so, the recession had an impact of the real growth rate for this country, resulting in a reduction to a negative 2.5% at close of 2009 after enjoying a 4% increase during 2008. In order for experts to forecast the future economy of Greece, it has to look at past activity. For instance, in 2008 the GDP was $351.95 billion in US dollars and then fo4 2009, the numbers ended up at $330.78 billion, a reduction of 6.01%. At that time, Greece was listed as number 28 for world rankings. Looking at trends and other data, forecasters are stating that 2010 should end at $325.08 billion. Then for 2015, change will occur but it is expected to be unsubstantial ending at $341.967 billion in US dollars.

Greece Unemployment Forecast

Of the 11.162 million people making up the Greece population, approximately 4.5 million are employed. Currently, the Greece unemployment rate is relatively high at 9.4%. The estimated unemployment rate for 2010 is even higher pushing it to close at 12.00% and for 2015 an additional climb is anticipated, putting the rate at 13.00%.

Greece Inflation Rate Forecast

Regarding the Greece inflation rate, year-end 2009 reported at 1.353%, which was a reduction of 68.06% from 2008 that reported 4.24%. For 2009, the inflation rate put this country at number 129 for world rankings. Experts believe a 40.43% increase will be seen from 2009 to 2010, which would put 2010 at 1.90% by the end of the year. Then looking out further to 2015, the average percentage change for consumer pricing is expected to hit 1.7%, an insignificant change.

Greece Current Account Balance Forecast

Specific to the Greece current account balance, 2009 was at a negative $37.104 billion in US dollars. Compared to 2008 that closed at a negative $51.22 billion, a reduction of 27.55% occurred, placing the country for world ranking at number 177. Forecasters use all current account transactions excluding capital and financial items to determine what future numbers will be. With this, 2010 and 2015 are predicted to reach a negative $31.49 billion and a negative $24.926 billion in US dollars respectively.