Greek economy to keep strong growth rate: minister

Greek Economy and Finance Minister George Alogoskoufis on Friday said that the Greek economy would keep its strong growth rate over the coming years, due to the development prospects for Southeast Europe.

Alogoskoufis made the remarks at the annual assembly of the Institute of International Finance (IIF) in Athens which draws together more than 500 leading financiers and economic policy-makers around the world.

Alogoskoufis said that the growth rate of the Greek economy reached 4.6 percent in the first quarter of 2007. Growth was mainly fueled by exports and investments growth in both the public and private sectors, he said.

The minister noted the significant reduction in the country's fiscal deficit, which fell to below 2.6 percent of GDP in 2006, and a new decline was predicted this year.

The unemployment rate in Greece was also reduced to below 9 percent in 2006, Alogoskoufis added.

The minister stressed that the wider region of Southeastern Europe have the prospects to become Europe's next economic miracle, where Greece plays a significant role.

Alogoskoufis said that Greek business investments in the region currently have exceeded 15 billion euro (about 20.34 billion U.S. dollars), while the Greek banks have developed a network of more than 2,300 branches in the region.

The Institute of International Finance, Inc. (IIF), a global association of financial institutions, was created in 1983 in response to the international debt crisis. Its members include most of the world's largest commercial banks and investment banks, as well as a growing number of insurance companies and investment management firms.

Source: Xinhua