BUSINESS

Greek economy grows by 0.8 pct in Q3

TAGS: Economy

Greece’s economy expanded for the second quarter in a row and by more than analysts expected in July-September, statistics service data showed on Tuesday, boding well for a stronger recovery next year after a protracted recession.

Revised estimates showed a 0.8 percent expansion rate in the third quarter compared to April-July, when gross domestic product grew 0.4 percent.

It was a higher reading than a 0.5 percent flash estimate released earlier this month.

The seasonally adjusted data showed the 175-billion-euro economy expanded at an annual 1.8 percent pace in the third quarter, faster than a previous 1.5 percent estimate.

The revised readings beat market expectations.

Analysts polled by Reuters had forecast 0.5 percent quarter-on-quarter growth and a 1.4 percent annual expansion rate in the third quarter.

“The data confirm the economy bottomed out in the second quarter. Domestic demand is strengthening in the second half and a positive reading of 0.1 percent for the full year now appears a plausible scenario,” said Eurobank chief economist Platon Monokroussos.

The European Commission and Greece’s central bank had been projecting a 0.3 percent economic contraction for this year as a whole.

The EU sees the economy rebounding by 2.7 percent next year, while the Bank of Greece projects it will expand by 2.5 percent. The OECD in its latest forecasts sees 1.3 percent growth next year.

[Reuters]

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