Bank of Greece: recession worse than expected

The Associated Press

EUROKINISSI
Central bank governor George Provopoulos presents the annual report to the bank's annual general assembly in Athens, Tuesday, April 24, 2012. The Bank of Greece is forecasting a 5 percent contraction in the crisis-hit country's economy in 2012.

ATHENS, Greece (AP) — The Bank of Greece warned Tuesday that the country faces a worse-than-expected recession in 2012, with the economy set to shrink 5 percent, and urged politicians to make a swift return to cost-cutting measures after the May 6 general election.

Tough conditions demanded for rescue loan deals have pushed Greece into a fifth year of recession and brewed widespread popular discontent. Some economists fear that politicians may be tempted to relax their focus on reforms after the elections.

"Domestic and overseas conditions do not allow for the slightest complacency or relaxation ... Full readiness is required the very day after the election campaign ends," central bank governor George Provopoulos told the bank's annual general assembly.

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April 24, 2012

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Wednesday, May 22, 2013 Last Update: 8:14 AM ET