ECONOMY

Lower Greek growth in first quarter

lower-greek-growth-in-first-quarter

The 1.5 percent growth rate recorded in the first half of 2019, announced on Wednesday by Greece’s statistics service (ELSTAT), raises the bar for the new government to secure the growth it seeks.

ELSTAT data showed the economy expanded at an annual 1.9 percent rate in the second quarter, accelerating from a downwardly revised 1.1 percent growth rate in the first quarter.

However the government wants an average growth rate of 3.5 percent in the second quarter to bring 2019 growth to the 2 percent range.

Economic analysts believe this target may be feasible, based on current data.

Greece’s central bank forecasts a 1.9 percent growth this year in its annual monetary policy report published early July, an expansion pace below what the government is projecting.

The previous SYRIZA administration had forecast a 2.3 percent growth.

The seasonally adjusted data showed gross domestic product expanded by 0.8 percent in the second quarter compared to a 0.2 percent growth rate in January-to-March.