The Guardian — The Greek economy emerged from recession for the first time since 2014, managing two straight quarters of GDP growth, figures show.
Greece’s gross domestic product (GDP) increased by 0.5% in the three months to September from the previous quarter and by 1.5% from the third quarter of 2015, statistics bureau Elstat said.
It had already nudged 0.2% higher in the second quarter from the first. Two consecutive quarters of growth officially mark the end of a recession.
The Greek government expects the Greek economy to contract by 0.3% in the full-year 2016, before returning to growth next year when it predicts GDP to surge by 2.7%.
Faced with a second bailout review entailing an unpopular liberalisation of labour laws, the Athens government is keen to show that the taxation and pension cuts that were part of the trade-off for last year’s 86-billion-euro bailout deal will bear fruit and lead to economic recovery.
The growth came partly from EU spending on aid for refugees arriving in Greece fleeing war and persecution.
“The flash readings were above forecasts of around 0.2 percent, showing that the economy did not rely just on tourism but was helped by domestic demand and improved liquidity in the corporate sector amid clearance of arrears,” National Bank economist Nikos Magginas said.
The Greek government is hoping that a visit to the country by Barack Obama, the outgoing US president, will also help the country with its quest for debt relief.
