World

Greek budget projection shows recession will finish next year

09:56 am on 8 October 2013

A draft budget projection shows Greece will emerge from six years of recession next year, in one of the strongest signs yet that the country has left the worst of its crippling debt crisis behind.

The budget predicts the economy, which has shrunk about a quarter since its peak in 2007, will grow by 0.6% next year, thanks to a rebound in investment and exports including tourism.

The economy is set to contract by 4% this year.

Greece's deputy finance minister says the country has been in a painful recession for the last three years, but the sacrifices it has made have begun to yield fruit, giving the first signs of an exit from the crisis.

But analysts are cautioning that Greece remains hooked on aid money.