💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Greek economy grows 0.8 percent in third quarter, beats forecasts

Published 11/29/2016, 06:12 AM
Updated 11/29/2016, 06:20 AM
© Reuters. Mitsos Dan, a worker from Albania, welds parts of agricultural machinery at a factory in Athens

By George Georgiopoulos

ATHENS (Reuters) - Greece's economy expanded for the second quarter in a row and by more than analysts expected in July-September, statistics service data showed on Tuesday, boding well for a stronger recovery next year after a protracted recession.

Revised estimates showed a 0.8 percent expansion rate in the third quarter compared to April-July, when gross domestic product grew 0.4 percent. It was a higher print than a 0.5 percent flash estimate released earlier this month.

Faced with a second bailout review entailing unpopular labour reforms, Athens is keen to show that higher taxes and pension cuts that came with last year's 86 billion euro aid deal will bear fruit and lead to economic recovery.

Recovery will be key to bring down an unemployment rate of nearly 24 percent, the highest in the euro zone, and attain a projected primary budget surplus of 2 percent - excluding debt servicing outlays - demanded by Greece's official creditors.

The seasonally adjusted data showed the 175 billion euro economy expanded at an annual 1.8 percent pace in the third quarter, faster than a previous 1.5 percent estimate.

The revised readings beat market expectations. Analysts polled by Reuters had forecast 0.5 percent quarter-on-quarter growth and a 1.4 percent annual expansion rate in the third quarter.

"The data confirm the economy bottomed out in the second quarter. Domestic demand is strengthening in the second half and a positive reading of 0.1 percent for the full year now appears a plausible scenario," said Eurobank chief economist Platon Monokroussos.

The European Commission and Greece's central bank had been projecting a 0.3 percent economic contraction for this year as a whole.

The EU sees the economy rebounding by 2.7 percent next year, while the Bank of Greece projects it will expand by 2.5 percent. The OECD in its latest forecasts sees 1.3 percent growth next year.

Looking at the components of gross domestic product, the increase in economic output was due to stronger private consumption and a positive contribution from net exports.

© Reuters. Mitsos Dan, a worker from Albania, welds parts of agricultural machinery at a factory in Athens

Consumption grew 2 percent compared to the second quarter, with imports declining by 10.2 percent and exports increasing by 3.7 percent. Gross capital formation fell 30 percent from the previous quarter.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.