Greece: Economy grows at fastest pace in over six years
December 5, 2014
In the third quarter, the economy expanded 1.9% over the same period last year (previously reported: +1.7% year-on-year), according to more detailed data released by the Hellenic Statistical Authority (EL.STAT) on 5 December. Q3’s reading marked the fastest rate of growth since Q1 2008 and represented a notable improvement over the 0.4% increase tallied in Q2. Q3’s result, which came in above the 0.7% expansion that markets had expected, mainly reflected a solid performance in external accounts and private consumption.
On the domestic side of the economy, growth in private consumption accelerated from a mild 0.7% in Q2 to 3.6% in Q3. Conversely, government consumption declined 2.4% in Q3, which contrasted the 2.2% rise tallied in Q2. Fixed investment tumbled 27.5% in Q3, which followed a 3.6% decline in Q2 and marked the lowest reading in three quarters.
Exports of goods and services rose 6.9% in the third quarter (Q2: +9.5% year-on-year), while imports increased only 3.0% in Q3 (Q2: +9.3% yoy). Since imports decelerated much faster than exports, the external sector’s net contribution to overall economic growth swung from minus 0.1 percentage points in the second quarter to plus 1.6 percentage points in the third quarter.
The economy increased 0.8% over the previous quarter in seasonally-adjusted terms in Q3, which was up from the 0.4% expansion tallied in Q2.
Author: Cecilia Simkievich, Economist