The IMF has predicted a huge contraction in Greece for this year and for 2013. Predictions for GDP in the Eurozone are -0.4 this year and 0.4 next year, but Greece falls way below this with the worst estimates in the world.
- –6.9% actual GDP in 2011
- –6.0% 2012 projection
- –4.0% 2013 projection
Sir Mervyn King will concede there might be occasions when the Bank of England should 'aim off' the 2% inflation target.
It is the kind of message we have heard from the IMF before - think about having a Plan B ready, but don't press the button yet.