Greece returns to recession with first-quarter GDP shrank by 0.2 percent
by
ISTANBULMay 13, 2015 - 12:00 am GMT+3
by
May 13, 2015 12:00 am
The most troubled member of the eurozone is back in recession, according to EU data released Wednesday, which showed that Greek gross domestic product (GDP) has shrunk for two consecutive quarters.
In the first three months of 2015, Greece's GDP posted a quarter-on-quarter contraction of 0.2 per cent after a 0.4-per-cent fall in the fourth quarter, the EU's statistics agency, Eurostat, said.
An economy is said to be in recession when it shrinks two quarters in a row.
Athens is in the middle of fraught talks with eurozone partners on the extensions of its bailout agreements, needed to avoid bankruptcy and keep the country in the eurozone.
Analysts suggested that tensions from the negotiations are weighing down the Greek economy.
"There is no doubt that huge uncertainty is taking its toll on domestic economic activity," Marco Valli of Italy's UniCredit bank said in a note.
Jonathan Loynes of Capital Economics, a British research group, said an escalation of the "Greek situation" would cause widespread damage and noted that "there are signs from some of the business surveys that the Greek crisis is restraining the [eurozone] recovery."
Keep up to date with what’s happening in Turkey,
it’s region and the world.
You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.