Greece Has Sunk Back Into Recession

16th May 2017

Greece has fallen back into recession for the first time since 2012, according to official figures from Eurostat.

Greece has fallen back into recession for the first time since 2012, according to official figures from Eurostat.

The country's gross domestic product (GDP) fell by 0.1 per cent in the first three months of the year after shrinking by 1.2 per cent in the final quarter of 2016. The return to recession is thought to be largely due to uncertainty over the bailout.

Greece is still struggling to secure a new bailout from international lenders, and Greek unions have just started two days of industrial action against the cuts to pensions and tax rises that the creditors are insisting on.

Its government hopes the loan payment will be approved by a meeting of eurozone finance ministers on 22 May.

On the whole, the EU continued to grow in the first quarter, expanding by 2 per cent compared with the same period last year.

In the eurozone, annual growth came in at 1.7 per cent, with a 0.5 per cent rise for the quarter compared with the last three months of 2016.

The fastest-growing economies were Latvia, Lithuania and Portugal, which expanded by 1 per cent in the quarter.

Germany, the EU's biggest economy, posted a 0.6 per cent expansion.


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