Athens News Agency: News in English, 06-09-18

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] FinMin: Strong growth of Greek economy will continue

[01] FinMin: Strong growth of Greek economy will continue

Alogoskoufis said that the rate of growth of the Greek economy could potentially be revised to a level above the 3.8 percent predicted in the state budget, due to the fact that interest rates in Greece remained at historically low levels, despite the increases announced by the European Central Bank.

Greece also benefited from the recovery of the European economy, Alogoskoufis added.

Regarding inflation, Alogoskoufis noted the concern of the finance ministers of the countries attending the conference over the upward pressures caused by the high oil prices internationally.

He said that 3.2 percent remained the targeted inflation rate for Greece in 2006, as predicted in the budget, and stressed that, in every instance, the data that will arise over the next few months, until the end of the year, would be evaluated.

On the European economy, Alogoskoufis said that all forecasts indicated that the current recovery would continue. He conveyed the concern that existed, however, over the prospect of the planned increase in VAT in Germany by 3 percentage points as of January 1, 2007 will result in a reduction in consumption in that country, which he said was the steam engine of the European economy.

Regarding the inflationary repercussions created in the economies by the high price of oil, the determination of the central banks' governors for confronting them was expressed during the IMF conference.

Alogoskoufis further said that finance ministers were reserved on the prospect of a further decline of the real estate market in the US, which would have significant repercussions on the US economy and, by extention, on the global economy.

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