The Greek economy will remain in recession this year and in 2010, with the country's Gross Domestic Product expected to shrink 0.8 pct in 2009 and 0.1 pct next year, the International Monetary Fund announced on Thursday.

In its quarterly report, entitled βGlobal Economy Outlookβ, which was unveiled on Thursday, the IMF said the Greek economy grew by 4.0 pct and 2.9 pct in 2007 and 2008, respectively. The report said Greek inflation was projected at 1.1 pct this year and 1.7 pct in 2010, after reaching 3.0 pct and 4.2 pct in 2007 and 2008, respectively.

The country's fiscal deficit is expected to reach 6.4 pct of GDP this year, rising more to 7.1 pct in 2010, while the unemployment rate will rise to 9.5 pct of the workforce in 2009 and to 10.5 pct in 2010. The unemployment rate was 8.3 pct in 2007 and 7.6 pct in 2008.

IMF's report said that government economic stimulus programs and higher demand in Asia helped the global economy exiting from its worst recession after World War ΙΙ.

The International Monetary Fund revised downwards its estimates for this yearβs global economic growth, but significantly revised upwards its forecast for 2010. Global GDP will shrink by 1.1 pct in 2009, to rise by 3.1 pct in 2010 (July's estimates were -0.8 pct and +2.5 pct, respectively).

Eurozone's GDP will shrink by 4.2 pct this year, to rise by 0.3 pct in 2010, the US economy is expected to shrink by 2.7 pct in 2009, rising to 1.5 pct next year, while the Japanese economy was projected to shrink by 5.4 pct in 2009, rising to 1.7 pct in 2010.