RTE NEWS — Greece’s economy shrank 0.4% in the first quarter compared to the last three months of 2015, a flash estimate by the country’s statistics service ELSTAT showed Friday.
Some economists said the reading signalled that Greece could return to growth in the second half of the year, which includes its peak summer tourism season, if talks over its key bailout review are wrapped up soon.
Economists polled by Reuters were expecting a 0.5% decline in gross domestic product quarter-on-quarter.
After years of recession, a contraction of 0.3% in 2015 was milder than expected due to tourism and as capital controls imposed on banks in June damaged the economy less than expected.
Friday’s data showed the economy shrank at an annual 1.3% pace from January to March, a faster clip than a 0.8% decline in last year’s final quarter, in line with market expectations.
Analysts said that the figures confirmed expectations for a return to growth in the second half of the year, on condition that the conclusion of the review would offset the negative impact on economic output of the new fiscal measures Athens adopts.
