Economy recovers after 3-year recession
The economy recorded a positive growth rate for the second quarter in a row, suggesting that it has recovered from the three year recession in which it had plunged in the fourth quarter of 2011.
The Statistical Service Cystat published on Tuesday growth data according to which the economy grew during the second quarter by 1.2% compare to the same quarter of 2014, having already recorded a 0.2% growth rate in the first quarter of 2015.
The data confirms a flash estimate for GDP growth in the second quarter announced by Cystat on August 14.
This is the second quarter in a row the economy recorded growth after it cvontracted for 14 consecutive quarters.
Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at +0.8%. The flash estimate had forecast a growth of 0.9% in the second quarter.
Compared to second quarter estimate.
Positive growth rates were recorded in manufacturing, trade, hotels and restaurants, transport, communication, the professional, scientific and technical activities and administrative and support service activities as well as the financial service activities.
¡egative growth rates were recorded electricity as well as the activities of employers.
Seasonally adjusted GDP rose by 0.4% in both the euro area and the EU28 during the second quarter of 2015, the last by 0.5%, quarter, GDP grew in the confirming Cystat’s flash in construction,
households as compared with the previous quarter, according to a second estimate published by Eurostat.
In the first quarter, GDP grew by 0.5% in both areas. Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 1.5% in the euro area and by 1.9% in the EU28 in the second quarter of 2015, after +1.2% and +1.7%, respectively, in the previous quarter.
GDP increased in all member states, except France where it remained stable. The highest growth compared with the previous quarter was in Latvia (+1.2%), Malta (+1.1%), the Czech Republic, Spain and Sweden (all +1.0%), followed by Greece and Poland (both +0.9%), Slovakia (+0.8%), Estonia, Croatia, Lithuania, Slovenia and the United Kingdom +0.7%). The lowest growth rates were registered in Netherlands, Austria and Romania (all +0.1%).
Meanwhile, deflationary pressures continued for the ninth month in a row in August, having started in December 2014, according to the Harmonised Index of Consumer Prices published by Cystat.
Harmonised inflation fell in August by -1.9% compared to August 2014, when inflation was up by 0.8%. July recorded a deflation of 2.4%. During the first eight months of 2015, harmonised inflation was -1.6% compared to the same period of 2014. (all the