Consumption in Greece

Greece - Consumption
Economy records slowest increase since Q1 2021 in Q3
Activity softened in the third quarter, with GDP expanding 2.8% year on year (Q2: +7.1 yoy). Q3’s reading marked the lowest growth since Q1 2021.
The downturn was broad-based, with private consumption, public spending, fixed investment and exports all weakening. Private consumption growth waned to 6.2% year on year in Q3 from an 8.9% expansion in Q2, dented by higher inflation during the period. Public consumption fell at a steeper rate of 2.9% in Q3 (Q2: -1.3% yoy). Meanwhile, fixed investment growth fell to 7.7% in Q3, constrained by tighter financing conditions (Q2: +9.8% yoy).
Exports of goods and services growth fell to 0.9% in Q3 (Q2: +18.8% yoy) in line with a worse-than-expected tourist season, while imports of goods and services growth moderated to 5.2% (Q2: +14.5% yoy); both marked the lowest readings since Q1 2021.
On a seasonally adjusted quarter-on-quarter basis, the economy contracted by 0.5% in Q3, contrasting the previous period’s 0.6% increase. Q3’s reading was the first sequential contraction since the outbreak of the Covid-19 pandemic in Q2 2022 and indicated that underlying momentum is fading.
Turning to the fourth quarter, the economy is seen shrinking again in sequential terms. Downbeat manufacturing PMI readings in October and November suggest that industrial activity is weakening, while higher interest rates should be taking a toll on private spending and investment. Additionally, a more challenging international backdrop is likely slowing the external sector further. That said, the government’s energy subsidies managed to slow inflation in October and November and are providing much-needed relief to households and firms.
Analysts at the EIU commented on the outlook:
“We expect the disbursement of EU recovery funds to support real fixed investment growth in Greece, which we forecast will average about 10% over our forecast period. However, there are downside risks from the energy crisis and monetary tightening, and the recovery will only partly offset the severe depletion of Greece’s capital stock during the previous economic crisis.”
FocusEconomics panelists see GDP growing 1.4% in 2023, which is unchanged from last month’s projection. In 2024, the panel sees the economy expanding 2.4%.
Greece - Consumption Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Consumption (annual variation in %) | -0.3 | 0.1 | 0.9 | 0.9 | 0.7 |
Greece Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 1.91 | 0.76 % | Jan 01 |
Exchange Rate | 1.12 | 0.65 % | Dec 31 |
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Economic News
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Greece: Harmonized inflation drops to lowest level since February in December
January 18, 2023
Harmonized inflation came in at 7.6% in December, down from November’s 8.8%.
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Greece: Decline in industrial activity softens in November
January 10, 2023
Industrial output dropped 0.9% year on year in working-day adjusted terms in November, which was above October's 2.7% decrease.
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Greece: Unemployment declines to over twelve year low in November
January 10, 2023
November’s data pointed to an improvement in the labor market.
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Greece: Manufacturing PMI records worst reading since December 2020 in December 2022
January 2, 2023
The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 47.2 in December, down from November's 48.4.
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Greece: Harmonized inflation declines to lowest level since March in November
December 19, 2022
Harmonized inflation eased to 8.8% in November from October’s 9.5%.