Eurobank’s economists believe that the Greek economy contracted in the second quarter of this year, which would mean four consecutive quarters of contraction for Greece’s gross domestic product, if proven accurate.
The Hellenic Statistical Authority (ELSTAT) is due to publish its flash estimate for this year’s second quarter GDP tomorrow. However, Eurobank analysts believe that a number of indicators point to another period of contraction. The economists have focused mainly on the contraction in private consumption, as highlighted by falling retail sales, and the drop in exports, which reached 7.2 percent in the second quarter of the year.
It is worth noting that ELSTAT recorded a 1.4 percent contraction of GDP in the first quarter of 2016. At the Finance Ministry, officials are confident that a recovery will be visible in the third quarter of the year even though they expect a recession of 0.7 percent for the year as a whole.
Eurobank economists stress that an upturn is vital to prevent the economy becoming mired. The lender’s analysts said that improvements in consumer sentiment and liquidity conditions are key for the country’s recovery.