BUSINESS

Greek economy in recession in 2016, statistics agency says

TAGS: Finance, Economy

Greece's economy contracted by 0.2 percent last year, the head of statistics service ELSTAT said on Tuesday, releasing its second estimate of full-year 2016 gross domestic product.

ELSTAT's estimate, based on seasonally unadjusted data, showed the economy performed worse than the country's official creditors were expecting based on their forecasts, driven by lower than previously estimated household consumption.

The European Commission, in its winter forecast published in February, projected GDP growth of 0.3 percent in 2016 while the International Monetary Fund's upwardly revised estimate saw GDP growth of 0.4 percent.

The government, which faces a third review to its international bailout this autumn, has cut this year's economic growth projection to 1.8 percent from 2.7 percent in May. [Reuters]

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