ATHENS (MNI) – Greece’s gross domestic product contracted sharply
in the first quarter of the year as investment shrank and public
consumption plummeted, the Greek statistics agency said Wednesday.
Greek GDP dropped 0.8% q/q in the first quarter of the year and was
down 2.3% compared with the first quarter of 2009. “The reduction in
investment as well as a significant decline in public consumption have
contributed to the reduction of GDP,” the agency said.
On the bright side, it noted that an improvement in the trade
balance had a positive impact on the GDP.
Greece is in the early stages of implementing a draconian austerity
plan to reduce its public deficit by 5.5 percentage points of GDP, from
13.6% to 8.1% by the end of 2010. The effort can only exacerbate the
country’s recession, with GDP expected to contract 4% this year.
–Angelika Papamiltiadou, +306-937-100071; a_papamiltiadou@hotmail.com
[TOPICS: M$X$$$,MGX$$$,M$$CR$,MT$$$$]
