7-year record high for the Greek GDP

7-year record high for the Greek GDP

Increased investment, exports and household consumption on the one hand, as well as increased imports on the other, with a slight decline in public sector consumption, formed the 1.3% of growth in the first quarter of this year, resulting on the 31 March in the highest GDP of the past 7 years.

The figures released by ELSTAT today show an annual growth rate of 0.9% in the first quarter, without seasonal adjustments, and 1.3% after seasonal adjustments, while a quarterly GDP growth of 0.2% was recorded after seasonal adjustments (the fourth quarter of 2018 had a negative change of -0.1%).

On an annual basis, final consumption expenditure decreased by 0.1% (EUR 40.092 million compared to EUR 40.663 million in the corresponding period of the previous year mainly due to shrinking general government consumption by 4.1%, as household consumption grew by 0.8%) while gross-fixed capital formation increased by 7.9%, exports of goods and services by 4.0% (exports of goods decreased by 0.7%, while exports of services increased by 8.7%) and imports by 9.5% (imports of goods increased by 9.9% and imports of services increased by 5.5%).

Especially regarding the increase in gross capital formation, it exceeded EUR 1 billion (it rose from EUR 7,021 million to EUR 8,130 million).

It is also noted that the rate of growth in the fourth quarter of 2018 was revised to 1.5%.

Changes

With regard to the changes that occurred during the first quarter, according to ELSTAT data, total final consumption expenditure declined by 0.1% compared to the 4th quarter of 2018. The fall in consumption of the General Government is large (-5%), while the household consumption marginally positive (0.2%). The gross-fixed capital formation increased by 8.1% compared to the 4th quarter of 2018. Exports declined by 2.1% (exports of goods decreased by 2.5% while exports of services decreased by 2.2%) and imports increased by 5.0% (imports of goods increased by 5.4% while imports of services increased by 0.6%).

The annual growth rate of GDP in the first quarter of 2019 (+1.3%) confirms that the recovery of the Greek economy continues for the 9th consecutive quarter, according to a comment by the Finance Ministry.

As it is stated, the GDP growth in the first quarter is broad-based and comes from strengthening its main components: Consumer spending of households (+0.8%), investments (+7.9%) and exports of goods and services (+4%).

In absolute terms, the GDP is at its highest since the first quarter of 2012./ibna