Greece’s growth numbers disappoint, consumption spending declines

Greece’s independent statistics agency ELSTAT said the country’s economy grew by 1.3 percent on the year in the previous quarter, failing to meet ambitious growth expectations from the government and European Union.

Without a revision, the July-September growth figure announced Monday suggests that Greece could miss its target of annual growth of 1.6 percent.

Greek economy grew by 1.3 pct in the third quarter compared with the same period in 2016, with the country’s Gross Domestic Product (GDP) rising 0.3 pct on a quarterly basis, ELSTAT said on Monday.

The statistics service revised the country’s GDP growth upwards in the second quarter to 1.6 pct from 0.8 pct. The GDP grew 0.4 pct in the first quarter of 2017.

The 1.3 pct GDP growth rate in the third quarter reflected an 1.0 pct decline in final consumption spending (household spending was unchanged while general government spending fell 2.2 pct in the July-September period), private investments fell 8.5 pct, exports and goods and services grew 7.8 pct (exports of goods rose 2.8 pct and exports of services rose 12.6 pct), while imports of goods and services rose 9.3 pct (imports of goods rose 9.2 pct and imports of services increased 6.9 pct).

On a quarterly comparison (third quarter/second quarter 2017), final consumption spending fell 0.1 pct (household spending eased 0.3 pct and general government spending rose 0.9 pct), private investments fell 6.1 pct, exports of goods and services rose 5.0 pct (exports of goods fell 0.6 pct and exports of services rose 9.8 pct), while imports of goods and services rose 0.4 pct (imports of goods eased 0.6 pct and imports of services rose 3.3 pct).

Based on non seasonally-adjusted data, Greece’s GDP grew 1.3 pct in the third quarter compared with the same period in 2016.

The data was released as eurozone finance ministers in Brussels discussed Greece’s bailout program and a technical agreement reached over the weekend between Athens and creditors on the terms of future disbursements.

Greece is set to exit the rescue program in August but continue austerity measures for at least another two years. [ap, amna]