Greek economy bounces back into growth territory during the second quarter

13th August 2015


The Greek economy has taken markets by surprise with its economy expanding by 0.8% in the second quarter.

The figure released by Greece’s statistic’s office Elstat is based on a flash estimate.

In addition, the 0.2% contraction registered for the first three months of the year has been revised up to flat reading.

The news comes when the Greek government is set to vote on its fresh bailout plan.

Greece has to repay €3.4bn (£2.4bn) to the European Central Bank by next Thursday or risk needing more emergency funding.

Greece had been in recession for six years on the back of the financial crisis before pulling itself out in 2014.

However GDP growth subsequently retreated again. According to BBC News, before the latest numbers were revealed it had been expected that Greece’s economy would fall back again this year by between 2.1% and 2.3%.

It reported Nikos Magginas at National Bank however said it was now possible that the contraction would be under 2%.

He said: “Some economic activity indicators in the second quarter, including consumption, industrial production and tourism, had shown particular resilience.”

Leave a Reply

Your email address will not be published. Required fields are marked *