Saturday, April 2, 2011

Greek 2010 budget deficit seen up, at 10.6 of GDP-paper

Greece's 2010 budget deficit may be revised upwards to 10.6
percent of GDP, a Greek newspaper reported on Saturday.
Without citing sources Kathimerini newspaper said that the Greek statistics agency has estimated the deficit at 24.6 billion euros, up from 22 billion euros previously forecast or 9.4 percent of GDP.
Eurostat is expected to release the official data on April 26, said Kathimerini which reported earlier this week that the EU statistics' office had reservations on Greek pension fund fiscal data. 
Finance Minister George Papaconstantinou (photo) told Reuters at the sidelines of a conference in Italy on Friday that the deficit would be higher than originally estimated and that Greece is waiting to see the Eurostat figures.
Greece is implementing tough austerity measures and structural reforms in exchange for a 110 billion euro bailout from the EU and the IMF, but the debt-choked country is struggling to meet its fiscal consolidation targets.
With its 230 billion euro economy in its third straight year of recession, generating revenue growth to further cut the deficit is proving difficult.
The economy is expected to contract 3 percent this year after a 4.5 percent slump in 2010.

by Renee Maltezou and Valentina Za
source: Reuters