OECD Says No Greek Recovery Yet

Despite rosy predictions from the government and its international lenders who said they expect Greece’s battered economy will begin to recover this year, the Paris-based Organisation for Economic Cooperation and Development (OECD) says it will still be retracting.

In its bi-annual Economic Outlook the OECD foresees the Greek economy shrinking by another 0.3 percent of GDP this year. It expects there to be growth of 1.9 percent of GDP next year.

Greece and the European Union, which along with the International Monetary Fund and European Central Bank makes up the Troika putting up 240 billion euros ($330.7 billion) in rescue loans, insist that a turnaround is on the horizon despite the effects of harsh austerity measures that have created record unemployment and deep poverty.

The OECD sees unemployment at 27.1 percent this year and edging downwards to 26.7 percent this year, a marginal change from the record 27.6 percent it hit last year, leaving 1.4 million people out of the recovery picture.

Greece has been surviving since 2010 on the rescue packages, most of which run out this year, and the government last month floated a 3-billion euro five-year bond, the first one since the bailouts began.