Greek economy grows 2.3% in first quarter and shows resilience

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People walk in Syntagma Square, in Athens, Greece April 20, 2022. REUTERS/Costas Baltas

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  • Economy grows 2.3% q/q in first quarter
  • Annual pace of expansion slows to 7.0%
  • Growth could exceed 3.5% for the whole of 2022

ATHENS, June 7 (Reuters) – Greece’s economy expanded from January to March at a faster pace than in the fourth quarter of last year, but its growth rate slowed on an annual basis, it said. the country’s statistics service (ELSTAT) on Tuesday.

Seasonally adjusted data showed gross domestic product rose 2.3% from an upwardly revised growth rate of 0.8% in the fourth quarter of 2021.

The data also showed the economy grew at an annual pace of 7.0% in the first quarter, slowing from an upwardly revised pace of growth of 8.1% in the previous quarter.

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“The economy has shown resilience, with growth accelerating on a quarterly basis on the back of strong domestic consumption and investment,” said Nikos Magginas, chief economist at National Bank.

He said the strength in consumer spending, which rose 11.6% year-on-year in the first quarter, coupled with a 12.7% increase in investment, offset the slowdown in net exports.

Last year, the economy’s overall performance beat budget forecasts for a 6.9% rebound as domestic demand remained strong. The economy shrank 9.0% in 2020, experiencing the second biggest recession in the Eurozone.

The International Monetary Fund (IMF) expects the Greek economy to grow by 3.5% this year due to rising energy prices and the Ukraine crisis. In April, the fund reduced its previous growth forecast of 5.4%.

Greek think tank IOBE expects the economy to grow 2.5-3.0% this year if the war in Ukraine does not end before the summer, it said in April.

The government forecasts growth of 3.1% this year, to reach 4.8% in 2023.

“Based on its performance in the first quarter, there is a strong likelihood that the annual growth rate of the economy this year will exceed 3.5%. The rebound in tourism is expected to boost second quarter figures,” said Magginas.

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KEY FIGURES T1 T4 T3 T2 T1

GDP (q/q, %) 2.3 0.8* 2.3* 1.3* 3.4*

GDP (y/y,%) 7.0 8.1* 11.7* 15.0* -1.7*

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* modified

source: ELSTAT

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(Reporting by George Georgiopoulos and Renee Maltezou, editing by Ed Osmond)

Our standards: The Thomson Reuters Trust Principles.

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