Saturday December 20, 2014 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
GDP contracts more than expected

 Economy shrank by as much as 6.5 percent in Jan-Mar period

By Sotiris Nikas

The recession in Greece is beating even the most pessimistic forecasts as the economy contracted by 6.5 percent in the year’s first quarter, according to data released on Friday by the Hellenic Statistical Authority (ELSTAT), leading to a revision in estimates for the whole of 2012.

ELSTAT’s provisional data were worse than the original estimates for the January-March period, which forecast a 6.2 percent contraction in the country’s gross domestic product. The development serves as a warning that there are worse days to come for the country’s economy as the climate has deteriorated considerably since April given that in the meantime worries of a Greek exit from the eurozone have increased.

Officially the forecast for the whole of the year is for a 4.7 percent contraction, but unofficially this has already been revised, with estimates pointing to a 6 percent GDP contraction.

The country’s output amounted to 40.6 billion euros in the year’s first three months, which was the worst quarter since 2005, when comparable data was first collected.

The GDP decline is attributed to the major decline in investment and consumption. Investment fell by 21.3 percent to come to just 5.3 billion euros in Q1, the worst for a long time in the Greek economy. Private and public onsumption shrank by 7.5 percent: Private consumption declined by 8.5 percent from the same quarter in 2011 to 31.8 billion euros, although it actually posted a small rise from the last quarter of 2011, when it had stood at just 31.1 billion euros. State consumption dropped 3.2 percent to 7.9 billion euros.

Inflation and exports did bring some more positive news, though. The inflation rate, based on a European Union measure, dropped to 0.9 percent in May from 1.5 percent in April. Exports posted growth of 1.4 percent in the year’s first quarter against the same period in 2011, while imports declined by 16.6 percent due to shrinking consumption.

The current account deficit contracted by 41.9 percent, somewhat offsetting the decline of the gross domestic product.

ekathimerini.com , Friday June 8, 2012 (22:45)  
Workers rush to get early retirement
Piraeus Containter Terminal goes from strength to strength
Moscovici: Creditor inspections to become less frequent and ‘lighter’
Property capital gains tax halt
Environment Ministry to reconsider controversial bill
The government over the weekend appeared to backpedal on proposed amendments widely seen as compromising legislation protecting Greek forests as well as Plaka, Athens’s old quarter. The bill...
Corfu to host country’s first hydroplane strip
Merchant Marine Minister Miltiades Varvitsiotis and Deputy Infrastructure and Transport Minister Michalis Papadopoulos have signed a decision paving the way for the country’s first hydroplan...
Inside News
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
SOCCER
Abidal cuts short playing career at Olympiakos
Former France and Barcelona defender Eric Abidal announced his retirement from football on Friday, a day before his last match. Abidal said he will finish after playing for Olympiakos agains...
Inside Sports
COMMENTARY
The big picture
In his second term, US President Barack Obama is taking steps to enshrine his legacy and solidify America’s standing in the 21st century. His recent decision to normalize relations between t...
EDITORIAL
Get your facts straight
The danger that political discourse in Greece will sink to the basest levels of vulgarity is already more than apparent from the allegations we have heard bandied about over recent days. The...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Environment Ministry to reconsider controversial bill
2. Corfu to host country’s first hydroplane strip
3. Political upheaval sharpens after bribe claims with threats and insinuations
4. Police gets new communications system
5. Most Greeks say they recycle daily
6. Probe into revenues of 2 mln euros in Halkidiki municipality
more news
Today
This Week
1. The big picture
2. Get your facts straight
3. Political upheaval sharpens after bribe claims with threats and insinuations
4. Environment Ministry to reconsider controversial bill
5. Changes on E9 property declarations possible until end-year
6. Police gets new communications system
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. Europe's drama in Greece needs final act to avoid tragedy
6. High stakes
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.