Skip to Content

Key To Growth is Investment - Finance Minister

The Minister of Finance Charilaos Stavrakis has called on business persons to start investing to boost the real economy, which slipped into recession as of the second quarter of this year.

“The very big and unexpected reduction on the private consumption has created a negative growth rate of the economy during the second quarter of 2009”, said Mr. Stavrakis.

Next Friday, the first government’s official forecasts for 2010 regarding unemployment, growth rate, inflation, and public finances will be released.

“While the public investments and consumption recorded a considerable increase of 10%, and especially in the sectors of public constructions, the private sector has shown a considerable shrinkage on consumption, despite the fact that the incomes of the private sector have increased by 5%," he said.

Consumption is the biggest contributor to Gross Domestic Product (GDP), he said, adding that private consumption restraint is caused by market’s bad psychology, the already existing over-lending of households, the high lending interest rates, and the banks’ pressure.

No votes yet

Poll

How Can the Government Improve the Economy?
By focusing on job creation
15%
By reducing interest rates in government-owned banks
0%
By changing the hours banks are open to normal working hours
0%
By changing the hours govt. offices are open to normal working hours
0%
By talking more positively about the economy
0%
By reducing corruption and bribery in the state sector
23%
All of the above
62%
None of the above
0%
Total votes: 26