Greece’s economy shrunk in the third quarter at a faster pace than expected earlier, and the contraction was the worst since early 2013, latest figures from the Hellenic Statistical Authority showed Friday.
The seasonally adjusted gross domestic product declined 0.9 percent from the second quarter, when the economy expanded 0.3 percent. A preliminary report released November 13 estimated the third quarter shrinkage at 0.5 percent and the second quarter growth at 0.4 percent.
The economy contracted for the first time since the final quarter of last year, as the capital controls imposed in the country during the time hurt economic activity. The latest decrease in GDP was the biggest since the first quarter of 2013, when the economy shrunk 1.8 percent. A year ago, GDP grew 1.2 percent.
In the third quarter, total consumption decreased 1 percent and investments declined 7 percent. Exports tumbled 7.1 percent and imports plunged 16.9 percent.
Year-on-year, the GDP declined an unadjusted 0.9 percent in the third quarter, revised from the modest 0.1 percent fall estimated earlier. In the second quarter, GDP grew 1.3 percent. The latest contraction was the first since the final three months of 2013.
This month, the European Commission downgraded Greece’s economic outlook and predicted that the country will be the only euro area member to witness recession until 2017. The economy had exited a prolonged recession only last year.
The embattled economy is now forecast to contract 1.4 percent this year versus 0.5 percent growth seen in May. Much worse was the downgrade to the growth forecast for next year to -1.3 percent from +2.9 percent. In 2017, the economy is seen rebounding with 2.7 percent growth.
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