Growth rate in Q2 confirmed at 4.1 percent
BRUSSELS – The growth rate of Greek gross domestic product reached 4.1 percent in the second quarter of the year according to Eurostat figures released yesterday. This is one of the highest performances in the eurozone, where growth slowed to 2.5 percent in Q2 from 3.2 percent in Q1. From the countries with data available, Greece had the strongest performance in the eurozone, although Ireland probably beat it, as it did not submit any Q2 data but in Q1 it had had a rate of 7.2 percent on an annual basis. In comparison with the first quarter, growth in Greece slowed down by 0.9 percent, as it did in the eurozone by 0.3 percent. In the first quarter it showed a 0.7 percent improvement over the last quarter of 2006. The highest growth rate in the whole of the European Union was recorded in Latvia, an impressive 11.3 percent, followed by Slovakia with 9.4 percent and Lithuania with 7.7 percent. The slight decline in the growth rate in the eurozone was within forecasts and is mainly attributed to the reduction in private investment as well as the contraction seen in the construction sector ahead of the crisis that erupted in the summer. Analysts noted that this slowdown in the second quarter was expected and probably only temporary after a relatively long period of strong investment. The growth rate is expected to return to much higher levels in the second half, with EU Economic and Monetary Affairs Commissioner Joaquin Almunia stating he does not believe that the crisis in the US centered around mortgages will have any substantial impact on Europe.
