Greece: Second quarter recession worse than initially estimated
September 8, 2011
In the second quarter, GDP contracted a revised 7.3% over the same period last year, down from the initial flash estimate of a 6.9% drop, but above the 8.1% contraction tallied in the first quarter. Final consumption expenditures dropped 6.8% (Q1: -7.4% year-on-year), with government spending plunging 9.7% (Q1: -6.9% yoy) and private consumption falling 6.1% (Q1: -7.9% yoy). In addition, fixed investment contracted 17.9% (Q1: -20.9% yoy). The sharp decline recorded in domestic demand was partially offset by a positive contribution from the external sector. That said, the net contribution from the external sector to overall economic growth moderated from 4.6 percentage points in the first quarter to 1.9 percentage points in the second. Exports of goods and services declined 1.4% (Q1: -2.5% yoy), while imports plunged a much stronger 7.6% (Q1: -12.8% yoy). EL.STAT did not provide seasonally adjusted figures due to methodological problems.