Sunday August 31, 2014 Search
Weather | Athens
31o C
24o 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 yearís 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.

ELSTATís provisional data were worse than the original estimates for the January-March period, which forecast a 6.2 percent contraction in the countryís gross domestic product. The development serves as a warning that there are worse days to come for the countryís 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 countryís output amounted to 40.6 billion euros in the yearís 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 yearís 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)  
Disappearing inflation heightens Draghi concerns
Ministry launches work experience program for unemployed graduates
Tax burden in Greece among EUís heaviest, study reveals
Coalition bent on protecting weaker groups
Traveling on public transport in Athens gets cheaper
Commuters will pay 20 cents less for tickets allowing them to use all modes of public transportation in Athens as of Monday, though they will be valid for 70 minutes rather than 90 as was th...
Push made for cuts in education as merger scheme fails
Finance Ministry officials are pressing the Education Ministry to cut costs after it emerged that a program for merging university and technical college departments failed to save 68 million...
Inside News
SOCCER
Tough draw for Greek sides in Europe League Greek stage
Following Thursday nightís high, when all three Greek teams competing in the Europa League made it into the group stage of the competition, a harsh reality struck Friday as they found out wh...
JUDO
Greek judoka Iliadis triples up as Aguiar stuns Tcheumeo
Greek star Ilias Iliadis claimed his third world title in the under-90kg category in Chelyabinsk on Friday as Brazilian Mayra Aguiar and Colombian Yuri Alvear won gold in the womenís under-7...
Inside Sports
COMMENTARY
Keeping an eye on international developments
The Ukrainian crisis may herald the start of a second Cold War, while there is no shortage of analysts comparing the current international climate to that of 1914 in the runup to World War I...
EDITORIAL
A few good men
It gives us a great deal of hope that we have a new batch of mayors and regional authorities, as well as university rectors who represent the voice of reason and prudence and are unafraid to...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
†RECENT NEWS
1. Traveling on public transport in Athens gets cheaper
2. Push made for cuts in education as merger scheme fails
3. Govít aims to curb measures, secure loans, allow tax relief
4. DIMAR chief Kouvelis hints about presidency
5. French expert says Crete crocodile in good health, aged 4-7
6. Tensions mar regional ity swearing-in ceremony
more news
Today
This Week
1. Keeping an eye on international developments
2. A few good men
3. Disappearing inflation heightens Draghi concerns
4. Two men drown off Crete coast in strong tides
5. Traveling on public transport in Athens gets cheaper
6. Push made for cuts in education as merger scheme fails
Today
This Week
1. Attack on gay couple in Athens leaves one man needing surgery
2. Purification rituals
3. The battle against progress
4. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
5. Strong undersea quake occurs off island of Milos, felt in Athens
6. Athens finalizes Paris talks goals
†††Find us ...
††... on
Twitter
†† ††... on Facebook ††
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.