Greek econ­omy grows in sec­ond quar­ter

The Pak Banker - - BUSINESS -

Greece's econ­omy grew 0.9 per­cent in the sec­ond quar­ter, com­pared with pre­vi­ous flash es­ti­mate of 0.8 per­cent ear­lier this month, helped by con­sumer spend­ing and net ex­ports, data showed on Fri­day.

An­a­lysts say the data sup­ports a more favourable out­look for the year as a whole than the of­fi­cial forecast for a 2.3 per­cent con­trac­tion and con­firms that de­spite po­lit­i­cal up­heaval, Greece has not re­turned to a re­ces­sion in 2015. "Cap­i­tal con­trols and a higher fis­cal bur­den will weigh on con­sump­tion in the sec­ond half. But the read­ing will cush­ion the full-year per­for­mance from an ex­pected slow­down in eco­nomic ac­tiv­ity in the sec­ond half," Na­tional Bank economist Nikos Mag­gi­nas said. Con­sump­tion grew 1.1 per­cent quar­ter-on-quar­ter, with net ex­ports helped by a 4.9 per­cent fall in im­ports com­pared with the pre­vi­ous three­month pe­riod. Ex­ports rose just 0.1 per­cent. "Con­sumer spend­ing was the main driver, its re­silience amid a pe­riod of un­cer­tainty helped by the con­tained fis­cal drag and a favourable im­pact on house­hold bud­gets from lower oil prices," Mag­gi­nas said.

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