Greece: GDP in Q3 revised downwards
December 9, 2010
In the third quarter, GDP fell a seasonally adjusted 1.3% over the previous quarter, according to revised figures published by the Hellenic Statistical Authority (ELSTAT) on 9 December, which was below the 1.1% drop previously reported on 12 November. Nonetheless, the third quarter drop was less severe than the 1.7% contraction recorded in Q2. On an annual basis, the economy contracted 4.6% over the same quarter last year (Q2: -4.0% year-on-year). The improvement over the previous quarter was mainly driven by the domestic sector. The quarterly result reflected an improvement in private consumption, which dropped 1.8% quarter-on-quarter (Q2: -6.4% qoq), as well as government consumption, which expanded a notable 7.9% in Q3 following a 2.0% increase in Q2. Meanwhile, fixed investment dropped 4.4% (Q2: -9.5% qoq). The net contribution from the external sector to overall growth improved in the third quarter as imports contracted more markedly than exports. Exports fell 6.2% over the previous quarter (Q2: -3.9% qoq), while imports declined 7.5% (Q2: +5.0% qoq). At the sector level, the improvement over the previous quarter was broad-based. The services sector improved, registering a 1.1% decline in the third quarter, following a 4.5% drop in the second quarter. Meanwhile, industry rebounded to a 1.8% expansion (Q2: -4.6% qoq). Finally, agriculture also improved, adding 2.0% over the second quarter (Q2: -2.7% qoq).