IMF: Greek to contract by 6%

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.

The IMF predictions for Greece:

  • –6.9% actual GDP in 2011
  • –6.0% 2012 projection
  • –4.0% 2013 projection

The grim economic forecast comes as Germany's Chancellor Angela Merkel is due to make an unpopular visit to Greece.

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IMF warns about 'damaging cuts'

The head of the International Monetary Fund has urged countries to ease back on cuts because of the impact on growth. It has previously warned the global economic recovery was weakening as government policies have failed to restore confidence.