Tuesday, July 12, 2011

Predictable Expectations

ATHENS (Reuters) - A deeper-than-expected recession caused Greece's central government deficit to widen by almost one third in the first half of the year, widely missing an interim budget target under the country's bailout plan, the finance ministry said on Monday.
...
Hurt by austerity, the Greek economy contracted at an annual pace of 5.5 percent in the first quarter. The Greek government revised downwards its 2011 growth forecast for this year to 3.9 percent.
Hoo-boy, another nobody-could-have-predicted moment.  Of course, it's not.  The Greek economy is going to contract until the cutting is stopped, or until it re-adopts its own currency.

Update 2011.07.12: As always, I'm hardly the first one to make the observation.

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