Greece GDP Q3 2017


Greece: Economic recovery falters in Q3

December 4, 2017

A provisional dataset released by the Hellenic Statistical Authority (EL.STAT) revealed that the economy decelerated in the third quarter, and the recovery remains modest overall. GDP increased 1.3% over the same period of 2016, below the second quarter’s revised 1.5% increase (previously reported: +0.7% year-on-year). EL.STAT notably revised GDP data for the period from Q1 2014 to Q2 2017, taking into account updated government data and other short-term indicators. The third quarter figure confirms that the economy remains on a recovery path after many painful years; however, the slow pace of expansion will make it difficult to reach the 1.6% growth target for 2017.

Q3’s slowdown was driven by a poor performance by the domestic economy. Private consumption contracted 0.4% annually, the first drop since Q2 2016. Despite gains in the labor market, the unemployment rate remains high and the return of inflation has started to dent household incomes. Fixed investment plunged a notable 8.7%, contrasting Q2’s 1.2% increase. Investment figures in Greece have been very volatile over the past year, not suggesting signs of a sustained recovery. Government consumption also contracted, dropping 2.2% (Q2: -2.1% year-on-year).

Meanwhile, the external sector also showed signs of weakness in Q3. Export growth slowed from a robust 8.7% in Q2 to 4.3% in Q3. High taxation has dampened the competitiveness of export goods; however, tourism revenues remain strong. Import growth also slowed in the third quarter, coming in at 3.7% (Q2: +4.3% yoy), reflecting the weak state of domestic demand.

On a quarter-on-quarter basis, the economy grew 0.3% in Q3 in seasonally-adjusted terms, which was below Q2’s 0.8% increase. The result marked the third consecutive quarter of growth, something the country has not seen in more than a decade. The country finally appears to be on a firm, but slow, path to recovery after years of painful austerity and bailouts.

Greece GDP Forecast

FocusEconomics analysts see GDP growing a moderate 2.0% next year, which is unchanged from last month’s forecast. In 2019, the panel sees growth stable at 2.0%.

Author: Angela Bouzanis, Senior Economist

Sample Report

Looking for forecasts related to GDP in Greece? Download a sample report now.


Greece Economic News

  • Greece: Industrial production growth slows in August

    October 10, 2018

    Industrial production growth lost steam in August, slowing from July’s revised working-day adjusted 2.0% year-on-year (previously reported: 1.9% yoy) to 1.4%.

    Read more

  • Greece: Unemployment rate dips in June

    September 10, 2018

    According to data released by the Hellenic Statistical Authority (EL.STAT), the number of unemployed workers fell by 12,624 in June compared with May, while those in employment rose by 17,656 in the same period.

    Read more

  • Greece: Industrial production accelerates in July

    September 10, 2018

    Industrial production growth accelerated from a working-day adjusted 1.2% annually in June to 1.9% in July.

    Read more

  • Greece: Unemployment rate falls in June

    September 6, 2018

    According to data recently released by the Hellenic Statistical Authority (EL.STAT), the number of unemployed workers decreased by 12,624 in June compared with May and the seasonally-adjusted unemployment rate fell to 19.1% from a revised 19.3% in the previous month (previously reported: 19.5%).

    Read more

  • Greece: Recovery loses traction in Q2

    September 3, 2018

    According to provisional data released by the Hellenic Statistical Authority (ELSTAT), the Greek economy lost some momentum in the second quarter, after expanding at the fastest pace in over 10 years at the start of the year.

    Read more

More news

Search form