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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.

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