Economy shrinks 6.3 pct in Q2

The Greek economy shrank by 6.3 percent in terms of gross domestic product in the second quarter of the year, according to provisional figures released on Friday by the Hellenic Statistical Authority (ELSTAT). The previous estimate had been for a 6.2 percent contraction in Q2.

Prolonged political uncertainty in the April-June period created serious drawbacks in the economy, while the true extent of the problems created is estimated to emerge in the third quarter of the year. The government now expects the recession to range between 6.5 and 6.9 percent of GDP for the whole of the year.

In the second quarter investment declined by 19.4 percent year-on-year, continuing the declining course of the last three years. Consumption contracted by 7.2 percent, with household spending dropping 8 percent and state expenditure falling 3.7 percent.

Exports declined by 4.1 percent against an 1.5 percent increase in the January-March period. Imports shrank further, by 12.3 percent, reducing the current account deficit by 39.9 percent.

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