The coast of Greece

Greece GDP Q3 2020

Greece: Decline in GDP moderates in Q3

GDP contracted 11.7% in annual terms in the third quarter, moderating from Q2’s 14.2% slump, as the lifting of the nationwide lockdown allowed for the gradual resumption of activity.

Q3’s softer downturn was driven by recovering domestic demand, with household spending expanding 1.0% year-on-year in Q3, swinging from Q2’s 12.0% dive. Moreover, public spending bounced back, growing 4.4% in Q3 (Q2: -2.7% yoy) as the government deployed further fiscal stimulus to address the socioeconomic impact of the pandemic. Meanwhile, fixed investment slid 0.3%, contrasting Q2’s 4.6% expansion.

On the external front, exports of goods and services contracted at a more pronounced pace of 44.9% year-on-year in the third quarter (Q2: -33.1% yoy), as still-depressed tourist arrivals weighed on the crucial tourism industry, which accounts for almost a fifth of the country’s GDP. Conversely, imports of goods and services decreased at a softer rate of 6.4% in Q3 (Q2: -12.9% yoy).

On a seasonally-adjusted quarter-on-quarter basis, GDP rebounded 2.3% in Q3, contrasting the previous quarter’s 14.1% fall.

GDP is expected to rebound strongly next year on the back of firming household consumption and supported by new inflows of EU funding. Moreover, the gradual lifting of Covid-19 restrictions at home and abroad should revitalize the tourism industry and bolster the external sector. However, the country’s enormous public debt level and elevated unemployment rate, as well as the banking sector’s high holdings of non-performing loans, remain key downside risks.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest