Greek consumer confidence fell to a record low in December amid concern over rising unemployment and the economic outlook for 2011.
Consumer confidence dropped almost six points to minus 75.4 points, the lowest since the data series began in May 2008, the Athens-based Foundation for Economic & Industrial Research said in an e-mailed report today. An index measuring short-term economic trends slipped to 65.6 from 67 in November, said the foundation, also known as IOBE.
Greek households “for the tenth month in a row remain the most pessimistic Europeans,” IOBE wrote. “The impact of the crisis, the process of adjustment to the new economic realities it brings and mainly the fear of spreading unemployment” are darkening Greeks’ economic outlook.
Unemployment climbed to the highest in almost 11 years in the third quarter of last year as the recession deepened and the country imposed austerity measures as part of a 110 billion-euro ($142.3 billion) international bailout.
The government forecasts the economy shrank 4.2 percent in 2010 and will contract 3 percent in 2011 as the recession continues for a third year. The jobless rate will jump to 14.6 percent in 2011 from 12.1 percent last year.
Greek employers see the country’s labor market contracting 5 percent in the first quarter of this year from the last three months of 2010, led by job losses in tourism, trade and construction, Manpower Inc.’s Greek unit said Dec.8.
Bloomberg Businessweek
