Greek economy shrinking

It seems that the forecast of a 3.5% decrease in Greece GDP in 2011 was too optimistic. The finance Minister Evangelos Venizelos said last week that the output is likely to contract by more than 4.5%. Also, the public deficit – the main symptom of Greece’s economic illness – is running towards dangerously high levels, closing at €14.69 billion for the first half of 2011. The targeted deficit for the entire year is at €16.68 billion… The EU-IMF audit entering its final phase today will determine whether Athens will receive next month a sixth tranche of loans as scheduled under the original €110 billion bailout plan, set in May of last year.