Greece back in the black for first time since 1948: EU

Tuesday 25 February 2014 16.59
Greece back in the black for the first time since 1948, says Olli Rehn
Greece back in the black for the first time since 1948, says Olli Rehn

Greece was back in the black for the first time since 1948, the EU's economics commissioner Olli Rehn has said as figures showed the economically-hobbled nation returning to growth.

"Greece has for the first time since 1948 reached a current account surplus," Rehn said.

He made his comments as he presented better than expected growth forecasts for the European Union for this year and next.

The EU's winter forecasts showed Greece returning to growth of 0.6% this year, with a significant leap of 2.9% expected for 2015, after a long and damaging recession.

Even joblessness in Greece is set to improve a little, although the unemployment picture remained bleak, with the number of job-seekers falling from 27% last year to 26% in 2014 and 24% in 2015.

That was more than twice as high as the overall unemployment rate forecast for the 18-nation euro zone of 12% this year and 11.7% this year. It also stands in sharp contrast with forecasts of 5.2% and 5.1% in Germany for this year and next.

Greek debt, which in 2013 peaked at 177.3% of GDP - although the EU ceiling is 60% - was set to ease to 177% this year and 171.9% in 2015.

"Greece should return to growth in 2014," the forecasts said. "Confidence indicators continue to improve, whilst hard data releases suggest the first signs of recovery. Structural reforms undertaken in labour and product markets have underpinned improved competitiveness leading to expectations for strengthened exports and investment," they added.