Tags: Greece | Economy | Shrank

Greece’s Economy Shrank 6.8 Percent in 2011, More Than Forecast

Tuesday, 14 Feb 2012 03:27 PM

Greece’s economy, reeling from austerity measures demanded by creditors in exchange for rescue funds, contracted almost a percentage point more last year than the government forecast, according to Bloomberg calculations.

Gross domestic product dropped 7 percent from a year earlier in the fourth quarter after contracting a revised 5 percent on an annual basis in the third quarter, the Athens- based Hellenic Statistical Authority said in an e-mailed statement today. GDP declined 6.8 percent for the full year, according to Bloomberg calculations, compared with a 6 percent contraction projected in the government’s 2012 budget.

Greece is now in what is forecast to be a fifth year of a recession compounded by spending cuts and tax increases as the country seeks to trim its budget deficit and debt burden. Prime Minister Lucas Papademos’s government on Feb. 13 passed through Parliament a new package of austerity measures demanded by the European Union and the International Monetary Fund in exchange for a 130 billion-euro ($172 billion) second rescue plan.

The fourth-quarter preliminary figure is based on available non-seasonally adjusted data, the statistics authority said. GDP declined a revised 8 percent in the three months through March and 7.3 percent in the second quarter, the agency said. It didn’t provide seasonally adjusted figures.


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