Bank of Greece sees 5 percent recession in 2012

[April 24, 2012]  ATHENS, Greece (AP) -- The Bank of Greece is forecasting a 5 percent contraction in the crisis-hit country's economy in 2012.

Central bank governor George Provopoulos made the forecast Tuesday while presenting an annual report to the bank's annual general assembly.

The European Union had predicted a 4.75 percent reduction in annual Greek output this year.

Provopoulos urged political parties to stick to Greece's punishing austerity measures after May 6 general elections, warning that political uncertainty would have "particularly harmful" consequences for the economy.

Opinion polls indicate neither of the traditionally dominant parties -- the socialists and conservatives -- will gain enough votes to form a government without a coalition.

[Associated Press]

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