Unemployment Numbers Are Still Pulling Greece Down
Amid concerns over Greece’s struggling economy, mixed news was released about the Mediterranean nation’s economic performance.
Reuters reports that Greece’s finance ministry projected that its economy will only contract by 3.8 percent in 2013, down from previous projections of around 4.2 percent. However, little data were available to back up the prediction, so many analysts doubt the veracity of the finance ministry’s claim.
In 2012, the Greek economy contracted at a rate of 6.5 percent, and while most experts do believe that this year’s contraction will be smaller than last year’s, they are unsure whether Greece will be able to post economic growth looking forward to 2014.
Reuters also released a report from the country’s statistics department, which posted a 27.9 percent unemployment rate in the month of June. Representing a 0.3 percent increase from May, the number is currently the highest on record and more than twice the average rate of unemployment in the eurozone.
Persistent unemployment is one sign that a recovery is not yet underway in Greece, and it is a problem that the nation will have to solve if it wishes to turn things around.