Investment in Greece
Greece - Investment
Decline in GDP moderates in Q3
GDP contracted 11.7% in annual terms in the third quarter, moderating from Q2’s 14.2% slump, as the lifting of the nationwide lockdown allowed for the gradual resumption of activity.
Q3’s softer downturn was driven by recovering domestic demand, with household spending expanding 1.0% year-on-year in Q3, swinging from Q2’s 12.0% dive. Moreover, public spending bounced back, growing 4.4% in Q3 (Q2: -2.7% yoy) as the government deployed further fiscal stimulus to address the socioeconomic impact of the pandemic. Meanwhile, fixed investment slid 0.3%, contrasting Q2’s 4.6% expansion.
On the external front, exports of goods and services contracted at a more pronounced pace of 44.9% year-on-year in the third quarter (Q2: -33.1% yoy), as still-depressed tourist arrivals weighed on the crucial tourism industry, which accounts for almost a fifth of the country’s GDP. Conversely, imports of goods and services decreased at a softer rate of 6.4% in Q3 (Q2: -12.9% yoy).
On a seasonally-adjusted quarter-on-quarter basis, GDP rebounded 2.3% in Q3, contrasting the previous quarter’s 14.1% fall.
GDP is expected to rebound strongly next year on the back of firming household consumption and supported by new inflows of EU funding. Moreover, the gradual lifting of Covid-19 restrictions at home and abroad should revitalize the tourism industry and bolster the external sector. However, the country’s enormous public debt level and elevated unemployment rate, as well as the banking sector’s high holdings of non-performing loans, remain key downside risks.
FocusEconomics analysts see GDP expanding 4.5% in 2021, which is down 0.6 percentage points from last month’s forecast. In 2022, the panel sees GDP growth at 4.3%.
Greece - Investment Data
|Investment (annual variation in %)||0.6||4.6||9.4||-12.0||4.5|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||1.91||0.76 %||Jan 01|
|Exchange Rate||1.12||0.65 %||Dec 31|
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February 11, 2021
The number of unemployed workers decreased by 15,849 in November 2020 compared to October, while the seasonally-adjusted unemployment dropped to 16.2% from October’s downwardly revised 16.4% (previously reported: 16.7%).
February 9, 2021
Industrial production grew 3.3% on an annual basis in December 2020, easing notably from November’s 8.9% jump.
January 15, 2021
The number of unemployed workers increased by 287 in October 2020 compared to September, while the seasonally-adjusted unemployment rate came in at 16.7%, matching September´s upwardly revised reading (previously reported: 16.1%), as well as October 2019’s result of 16.7%.
January 8, 2021
Industrial production rebounded solidly in November, expanding 8.6% in annual terms (October: -3.5% yoy) and logging the sharpest growth in nearly four years.
January 4, 2021
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) increased to 46.9 in December from November’s 42.3.