Greek experts call for investments to exit recession

The Greek economy will suffer from further recession in 2016 unless investments increase posthaste, the Foundation for Economic and Industrial Research (IOBE), one of Greece's leading think tanks, warned on Thursday.

Presenting the foundation's quarterly report during a press briefing in Athens, IOBE experts estimated that the ailing economy would shrink by about 1.5 percent in 2016 compared to 0.5 percent in 2015.

The country is in its seventh consecutive year of recession. The Left-led government appears optimistic that Greece can start returning to growth this year, but IOBE professors like Managing Director Nikos Vettas expressed doubt on Thursday.

IOBE's initial estimates of a 1.5 to 2-percent rate of recession for 2015 were not verified thanks to higher tourist revenue, lower energy cost, and the decline of the euro in recent months, he noted.

However, he warned the contraction of the economy would continue unless there was a significant increase of investments being made in the debt-laden country to restore growth.

IOBE warned that there were no magic bullet solutions, but the economy needed a radical transformation through bold reforms that should be embraced by Greek society.

"Investments shortage is expected to be the weak link of the economy also in 2016. Development will come only when we will create the right conditions to attract investments," Vettas stressed.

IOBE's report was presented as about 6,000 demonstrators had hit the streets of Athens once again protesting the government's plans to reform the pension and taxation systems.

Over the past two weeks, various professionals, from lawyers and doctors to farmers and seamen, have been protesting against the new round of austerity and reform policies the government is promoting to meet bailout goals in order to secure more loans from international creditors.

On Thursday, engineers, pharmacists, teachers and dentists rallied in the center of the Greek capital, as ferries remained docked at ports for a second day, and thousands of farmers lined up their tractors across Greece near national highways threatening with blockades in the coming days.

Protestors claim that the government's proposals for a "viable" pension system and a "fair" taxation system "strangle" the low income and middle class earners who do not tax evade and pay their contributions to funds.

Representatives of economic chambers added that under the draft bills on the table, the self-employed lose about 70 percent of their income to taxes and contributions to pension and health insurance funds.

The country's two largest trade unions representing public servants and private sector employees, ADEDY and GSEE, have scheduled the first general strike this year for February 4, calling on the government for "an honest dialogue" with unions in the meantime. Endit