Greece GDP Shrinks Less As Austerity Measures Paying Dividends

The severity of Greece’s recession eased slightly in the second quarter, according to the country’s statistics body.

Greece’s economy shrank at an annual rate of 4.6% in the three months to the end of June, a slight improvement on the 5.6% fall between January and March.

The figure came as the government said its budget had swung into a surplus between January and July.

The budget was boosted by EU subsidies.

Alpha Bank economist Dimitris Maroulis said he expected GDP to improve further in the third and fourth quarters.

“That means that recession will not exceed 4.2% this year,” he added.

The data came at the same time as Greece reported a budget surplus of 2.6bn euros (£2.2bn), trumping its target of a 3.1bn-euro deficit.

The sharp pick-up is largely due to the country receiving more European subsidies than expected and spending less of the money than initially planned on investment projects.

The figure was also boosted by one-off payments from central banks returning profits they made on Greece’s government bonds, a deal agreed as part of its international bailout.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza