Greece's GDP Shrinks 6.4% in 2012

 (Photo credit: SalFalko)

The Greek economy shrank by 6.4 pct in 2012, after a 5.7 pct decrease in the country's Gross Domestic Product (GDP) in the first four months of the year, following declines of 6.7 pct in the first quarter, 6.4 pct in the second and 6.7 pct in the third.

According to the Hellenic Statistical Authority (ELSTAT) in current prices, Greece's GDP was 47.267 billion Euros in the fourth quarter, falling to levels last seen in the second quarter of 2005. The government forecasts an economic recession of 4.5 pct for 2013.

ELSTAT said that the data for the fourth quarter was slightly better than initial forecasts (5.7 pct from 6.0 pct) and added that the new decline reflected both a big fall in private investments and a shrinking consumption. More precisely, private investments fell by 10.3 pct in the October-December period, while the consumption by households decreased by almost 9.6 pct (state consumption spending fell by 5.8 pct).

In the same period under review, Greece's trade deficit shrank by 17.5 pct, with exports falling by 4.8 pct and imports falling by 8.1 pct. Also in the fourth quarter of 2012 exports of goods rose 2.7 pct and exports of services fell 13.9 pct, while imports of goods fell 8.5 pct and imports of services eased 6.3 pct.