Recessions

IMF predicts modest growth, high unemployment

WASHINGTON -- Serbia's economic growth in this year and the next will be modest, while unemployment will continue to be high and inflation stable.

Consumer prices in Bulgaria will drop by 0.4% in 2014, which means there will be deflation, said the IMF in its spring World economic outlook. 

The Fund has increased its forecast for Bulgaria's GDP by 0.1%, to 1.6%. The expectations for the unemployment, however, remain pessimistic. It is expected that by the end of the year it will be 12.5%. 

By Marcus Bensasson & Mark Evans

Antonis Samaras’s mission to end Greece’s exile from bond markets faces a reality check this week as data shows how deeply the economy remains mired in deflation with the worst jobless rate in the euro area.

Greek retail sales by volume fell 1.9 percent in January from the same month last year, statistics service ELSTAT said on Friday.

The reading had dropped at an annual pace of 6.1 percent in December.

 Economic mood recovers on consumer confidence rise and forecasts for industry and construction rebound

Further evidence emerged on Monday that the economic recovery across the 18-country eurozone is accelerating and, perhaps more importantly, spreading to the bloc’s debt-laden laggards.

Economic growth across Europe is expected to be slightly stronger this year as the recovery gains ground, according to the European Commission's new forecast released Tuesday.

The euro-area economy will continue to lag behind its main competitors, the U.S. and China, this year and next as high levels of unemployment and debt hinder the currency bloc’s recovery.