The Greek economy expanded 16.2% in the second quarter of 2021 on a yearly basis, the Hellenic Statistical Authority (ELSTAT) said in its provisional report on Tuesday. This will likely lead to an upward adjustment in the rate expected for the year as a whole.
Prime Minister Kyriakos Mitsotakis welcomed the high growth rate announced, saying that it had dwarfed forecasts. “Greece’s economy surges 16.2% year-on-year in the second quarter, shattering expectations. Even during a period with partial lockdowns, quarterly GDP is already above pre-pandemic levels. We remain focused on reforms that deliver inclusive growth and raise living standards for all,” Mitsotakis wrote on Twitter.
As Greece emerged from its second Covid-19 lockdown, its economy also posted 3.4% quarterly growth compared to the January-March 2021 period.
After a 2.3% annual contraction in the first quarter of 2021, ELSTAT’s revised figures showed a 7% annual expansion in the year’s first half. The government’s previous forecast, in April, was 3.6% growth for the entire year.
“This growth rate is higher than the original forecasts,” commented Finance Minister Christos Staikouras: “It confirms the strong recovery of the Greek economy.”
The April-June period this year was also the most productive second quarter in the past decade in volume terms, narrowly topping that of 2019 by 0.03%.
The figures also showed that consumer spending increased 0.2% from the first quarter and 12.1% from a year earlier. Gross fixed capital formation grew 4.3% on a quarterly basis and 12.9% year-on-year. Goods exports increased 22.6% annually in Q2 and imports expanded 22.5%.
“Given the positive course of all components of domestic demand, that is consumption, investments, net exports and the constant increase of indexes such as those of economic sentiment, industrial output, manufacturing, construction activity and tourism arrivals, the course of the gross domestic product will be better than the estimates made in the Midterm Fiscal Strategy Framework,” said Staikouras.