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Revised figures show Greek economy shrank 0.3 percent last year but expanded in Q4

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Revised figures show Greek economy shrank 0.3 percent last year but expanded in Q4
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Greece’s economy is doing slightly better than previously thought, although it remains extremely weak.

Gross domestic product actually expanded in the final three months of last year, but only by 0.1 percent from the previous quarter. Year-on-year it shrank 0.8 percent.

Based on new data the Greek statistics service revised its growth estimates. Previously they had calculated a 0.6 percent decline for the period from October to December.

The revised numbers mean the country suffered a smaller full-year contraction than previously thought of 0.3 percent. The initial estimate had been -0.7 percent.

The improvement came from private consumption and investments. There was a faster decline in imports relative to exports.

“Despite the loss of support from tourism in the fourth quarter, the economy’s performance confirms its relative resilience which mainly came from domestic demand – investment and private consumption – despite the fiscal drag,” said National Bank economist Nikos Magginas.

However economists believe the Greek economy will contract this year by as much as 1.0 percent.

The latest European Commission forecast is that it will fall by 0.7 percent in 2016 before growing 2.7 percent next year.

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