By Todd Buell
WASHINGTON (MNI) – The pace of domestic growth in Greece will have
no repercussions on the European recovery, Greek Finance Minister George
Papaconstantinou told Market News International Saturday.
The minister does not see contagion risks on the rest of Europe
from a possible sluggish recovery in his country, but rather expects
quarterly growth to turn around by the end of next year, with positive
growth rates to be seen by 2012.
“Remember that Greece has had significant growth rates for a long
time. And all the reforms that we’re doing are going to increase its
growth potential,” he said on the margins of the IMF and World Bank
meetings.
“We are 3% of European GDP, so the pace of recovery in Greece has
no repercussions on European recovery,” he insisted.
Pressed on possible contagion risks from a slow recovery in Greece,
the minister retorted, “No, I don’t see that.”
“What I do see is that this year is the worst in terms of growth,
because we have a contraction of 4%,” he underlined.
“Next year the contraction is going to be much less, on the order
of 2.6% and by the end of next year we’ll have hopefully positive
quarters,” he said.
“And by 2012, there will be the resumption of positive growth,” he
predicted.
–MNI Washington; — +1-202-213-7496; tbuell@marketnews.com
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MGX$$$,M$EC$$,MT$$$$,M$X$$$,MX$$$$]
