Despite all expectations, Greece’s economy seems to be on a path to growth, expanding for the second quarter in a row and by more than analysts had foreseen. 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 reading than a 0.5 percent flash estimate released earlier this month.
This puts the 175-billion-euro economy at an annual 1.8 percent pace in the third quarter, faster than a previous 1.5 percent estimate, beating market expectations, which had predicted 0.5 percent quarter-on-quarter growth and a 1.4 percent annual expansion rate in the third quarter. According to Eurobank chief economist Platon Monokroussos, Greece should now expect a positive reading of 0.1 percent for the full year, a far cry from the European Commission and Greece’s central bank projections of a 0.3 percent economic contraction for this year as a whole.
These estimates are the first signs of a stronger recovery next year after a protracted recession. 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.
