Sorry, we made a mistake

Finally, the International Monetary Fund admits: we failed to realise the damage austerity would do to Greece. The IMF had originally predicted Greek economy would contract by just 5.5% between 2009 and 2012 but the country has actually lost 17% in real gross domestic output instead. Moreover, the plan predicted a 15% unemployment rate in 2012. It was 25%. IMF reports that “market confidence was not restored, the banking system lost 30% of its deposits and the economy encountered a much deeper than expected recession with exceptionally high unemployment.”

Epic fail?

Go to the article (The Guardian).

Go to the article (WSJ).

IMF ex-post evaluation (official).