Greece economy expanded for second consecutive quarter

Greece economy expanded for second consecutive quarter, registering surprising growth of gross domestic product (GDP). In the third quarter Greece recorded economic expansion of 0.5%, while in second quarter was recorded growth of 0.3%. The seasonally adjusted data show economic growth of 1.5% annually, which is significantly higher than expected.

So at this stage data of the statistics are indicative that the country can achieve economic growth next year, which was requested by the creditors. The estimates are that in the fourth quarter the GDP of Greece will remain positive and in 2016 the country’s economy will record growth of 0.1%.

The main support to the Greek economy will bring public investment spending, as well as the tourism.

Expectations of the European Commission and the Greek central bank are for a contraction of 0.3% in 2016. In 2017, the European Commission predicts growth of the Greek economy by 2.7%, while Greek central bank is more conservative and forecast growth of 2.5%.

Athens must start the official second review under the rescue program signed last August. Then the country received a loan totaling 86 billion EUR, divided into several tranches. Greece receives the funds when satisfy the claims of creditors in certain areas.

The second review will focus on unpopular reforms to the labor market and reducing pensions.

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