Greece: Economy grows less than expected in fourth quarter
January 27, 2015
In the fourth quarter, the economy expanded 1.2% over the same period of the previous year, according to more detailed data released by the Hellenic Statistical Authority (EL.STAT) on 27 February. Q4’s reading marked a deceleration from the 2.0% increase tallied in Q3 and came in below the flash estimate of a 1.5% expansion. Q4’s slowdown came on the back of a deterioration in the external sector.
On the domestic side of the economy, growth in private consumption slowed from the 3.3% increase in Q3 to a 1.7% expansion in Q4. Government consumption improved slightly contracting 2.6% in Q4, which was above the 3.6% contraction in Q3. Fixed investment accelerated 29.3% in Q4, which notably contrasted Q3’s 21.2% decline and marked an almost 9-year high.
Exports of goods and services rose 10.8% in the fourth quarter (Q3: +6.9% year-on-year), while imports increased 17.3% in Q4 (Q3: +3.0% yoy). Since imports outpaced exports, the external sector’s net contribution to overall economic growth swung from plus 1.6 percentage points in the third quarter to minus 2.7 percentage points in the third quarter.
The economy fell 0.4% over the previous quarter in seasonally-adjusted terms in Q4, which contrasted the 0.7% expansion tallied in Q3.