File photo: Greek Prime Minister Alexis Tsipras
Lima: Greece is likely to return to economic growth around the middle of next year if the government makes a serious effort to regain financial stability, European Vice President for the euro Valdis Dombrovskis said.
After years of recession, Greece's economy started growing again by 0.8 per cent in 2014 and the European Commission expected it to expand by 2.5 per cent this year, but a rejection of agreed reforms by the Alexis Tsipras government plunged the country back into recession.
"We were forecasting 2.5 per cent growth in Greece this year, now we expect a 2.0-2.5 per cent recession," Mr Dombrovskis told Reuters on the sidelines of the International Monetary Fund's meetings in Lima.
But Greece could quickly return to growth if the government ensures financial stability, because all the fundamentals are there, Mr Dombrovskis said.
"If the government works seriously to regain financial stability, it can return to economic growth," he said.
After years of recession, Greece's economy started growing again by 0.8 per cent in 2014 and the European Commission expected it to expand by 2.5 per cent this year, but a rejection of agreed reforms by the Alexis Tsipras government plunged the country back into recession.
"We were forecasting 2.5 per cent growth in Greece this year, now we expect a 2.0-2.5 per cent recession," Mr Dombrovskis told Reuters on the sidelines of the International Monetary Fund's meetings in Lima.
But Greece could quickly return to growth if the government ensures financial stability, because all the fundamentals are there, Mr Dombrovskis said.
"If the government works seriously to regain financial stability, it can return to economic growth," he said.
© Thomson Reuters 2015
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