Greece: Economy contracts less than expected
August 12, 2013
In the second quarter, GDP contracted 4.6% over the same period last year, according to the flash estimate released by the Hellenic Statistical Authority (EL.STAT) on 12 August. The decline represented an improvement over both the 5.6% drop recorded in the first quarter (previously reported: -5.3% year-on-year) and market expectations of a 4.8% drop. Nevertheless, the Greek economy has contracted without interruption since Q3 2008 as austerity measures and high unemployment weigh on economic activity.
El.STAT has not made seasonally adjusted figures available since Q1 2011 due to methodological issues. The statistics agency is due to release more complete data on 6 September.
The government expects GDP to contract 4.2% this year. FocusEconomics Consensus Forecast panellists see the economy contracting 4.7% in 2013, which is unchanged from last month's forecast. For 2014, the panel expects a milder contraction of 0.8%.