The embattled Greece was served another blow on Wednesday after the country’s economy slipped back into recession in the first quarter of the year as the lingering political crisis hurt the fragile recovery.
Gross domestic product declined a seasonally-and-calendar adjusted 0.2 percent from the fourth quarter when it fell 0.4 percent, preliminary data from the Hellenic Statistical Authority showed Wednesday. It was the second consecutive quarter of GDP contraction, which implied a technical recession.
In the first quarter of last year, the economy had grown 0.8 percent, exiting a long recession that persisted for six years.
On a year-on-year basis, GDP grew 0.3 percent following 1.3 percent expansion in the previous month. It was the weakest pace since the second quarter of last year.
Prime Minister Alexis Tsipras and his government have been engaged in talks with lenders for months to reach a deal to secure more funds as the country risks running out of cash soon.
On an unadjusted basis, GDP grew 0.1 percent year-on-year following 1.2 percent growth in the previous month. It was the fourth straight quarter of growth.
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