This year the Greek economy experienced its worst third quarter since 2005 as gross domestic product resulted in just 47.9 billion euros, according to data released this week by the Hellenic Statistical Authority (ELSTAT).
In what is traditionally the strongest period of the year – due to the fact that July, August and September usually see a strong contribution from tourism – the economy shrank 5.2 per cent, bringing the total rate of GDP contraction for the year to September to 7 per cent. It is clear that given such figures, the target of a 5.5 per cent contraction for the whole of the year would be difficult to attain.
Although data isn’t seasonally adjusted, and is likely to be revised, it is virtually certain that the recession this year will exceed 5.5 per cent according to analysts.
The third quarter’s worst GDP record in seven years (as comparable data stretch only as far back as 2005) represents a considerable drop compared to the same period last year, when the figure was 50.6 billion euros. The summer quarter was, as usual, the best of the year so far, as the contraction in the first quarter came to 8.3 per cent and 7.4 per cent in the second. For the year’s final quarter, pressure on the real economy is expected to grow, as austerity measures will be depriving the already staggering market of yet more capital.
For the 5.5 per cent target to be met, the contraction will need to shrink to just 1 per cent in the year’s fourth quarter. Meanwhile the Manpower Organization (OAED) announced yesterday that the number of registered unemployed declined by 0.26 per cent in October from September, with the total coming to 693,417 people. Finance Minister Evangelos Venizelos also informed Parliament that the Cabinet will approve of the 2012 budget draft tomorrow and that he will table it in the House on Friday. The budget will benefit from the haircut to the Greek debt factored in. The benefit for 2012 is expected to come to 4-5 billion euros. Venizelos added that the new tax bill will not be tabled in Parliament before February.
Source: Kathimerini
