Greek economy grows in second quarter, helped by consumer spending

ATHENS - Reuters

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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 Aug. 28. 

Analysts say the data supports a more favorable 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 three-month 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 favorable impact on household budgets from lower oil prices,” Magginas said.