Saturday September 20, 2014 Search
Weather | Athens
27o C
19o 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)  
Record sum of new debts to the state in August
‘Greece can meet its needs on its own’
Cyprus civil servants´ strike called off
Elliniko investors eye Cyprus project warily
Results of probe into 20 Lagarde list names due soon
Members of the Financial Crimes Squad (SDOE) and tax inspectors involved in an investigation into the so-called Lagarde list of Greeks with Swiss bank accounts expect to be able to announce ...
Police refute reports of Jihadi training
Greece is not a training ground for Jihadis, the Greek police said in a statement released late on Friday in response to reports in the local media claiming that radical Islamists have been ...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
Universities threatened by transfers
The problem arising from the abuse of the Greek university transfer system – whereby some students are allowed to move to an institution of their choice instead of the one they were admitted...
EDITORIAL
Capital changes
A sizable part of the middle of the Greek capital has been slated to receive a significant makeover with the implementation of an urban restructuring project which includes turning a key cit...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Results of probe into 20 Lagarde list names due soon
2. Police refute reports of Jihadi training
3. Gov’t drafts plan to secure exit from memorandum
4. Greek commuters have relatively long wait
5. IKA uncovers benefits scam at Kerameikos branch
6. Man dies in well accident
more news
Today
This Week
1. ‘Greece can meet its needs on its own’
2. Record sum of new debts to the state in August
3. Results of probe into 20 Lagarde list names due soon
4. Climber rescued on Mount Olympus
5. Special guard arrested over extortion, bribery
6. Gov’t drafts plan to secure exit from memorandum
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. Lost in the fog
5. Democracy under Pressure | Live Streaming
6. Lessons not learned
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.