Greece’s economy will shrink more than the government is forecasting this year, its central bank governor said.

Bank of Greece governor George Provopoulos said “bold” cuts to tame a €300 billion debt pile meant the economy would contract 2 per cent this year.

GDP shrank slightly less than feared at the end of 2009 and unemployment eased, data yesterday showed. Greece’s €240 billion economy, about 2.5 per cent of the euro zone’s, shrank at an annual rate of 2.5 per cent in the fourth quarter, less than the estimated 2.6 per cent. – (Reuters)