Greek GDP to shrink by up to 1.5 pct in 2009

[June Samaras]

Thomson Reuters
UPDATE 1-Greek GDP to shrink by up to 1.5 pct in 2009
11.24.09, 11:09 AM EST

http://www.forbes.com/feeds/afx/2009/11/24/afx7154071.html

ATHENS, Nov 24 (Reuters) - Greece's economy will contract by up to 1.5
percent this year, the country's
central bank chief said on Tuesday, revising downwards a previous estimate.

The Bank of Greece had said last month it expected GDP to contract by
about 1 percent this year.

'New estimates lead to the conclusion that for the entire 2009, GDP
contraction will exceed 1 percent,
but will probably be smaller than 1.5 percent,' said George
Provopoulos, head of the Bank of Greece
in a speech in parliament.

The unemployment rate is seen climbing above 9.5 percent this year,
Provopoulos said, from 7.7 percent last year.

But a shrinking economy will benefit the country's current account
gap, which is expected to narrow below
10.5 percent of GDP, still one of the highest in the European Union,
Provopoulos said.

The global economic crisis has weighed on the key drivers of Greek's
economy, tourism, construction and shipping.

Greece earlier this month reported a fourth consecutive contraction in
the third quarter, and revised down
earlier data to show it slipped into its first recession in 16 years
at the very start of 2009.

(Reporting by Harry Papachristou) Keywords: GREECE CENBANK/

(harry.pap...@thomsonreuters.com; +30 210 3376455; Reuters
Messaging: harry.papachris...@reuters.net)


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June Samaras
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