Greek economy sees growth in third quarter

greek economy bank of greece

According to the Hellenic Statistical Authority, the Greek economy grew by 2.8% in the third quarter of the year compared with the same period in 2021, but fell by 0.5% on a quarterly basis compared with the second quarter.

More specifically, on a quarterly basis, the country's Gross Domestic Product fell 0.5% in the third quarter after rising by 2.2% in the first quarter and by 0.6% in the second quarter.

The statistics service attributed the third quarter reading to the negative effects of significant subsidies on energy products, which counterbalanced an increase in gross added value.

Final consumption spending grew 3.6% (households up 6.2% and general government down 3.9%).

Private investments (gross fixed capital) rose 7.7%, exports of goods and services edged 0.9% up (goods fell 0.3% and services rose 3%), while imports rose 5.2% (goods were up 8.6% and services fell 4.6%).

On a quarterly basis, final consumption spending eased 0.6%, private investors rose 0.1%, exports fell 3.3% and imports eased 0.3%.

The Greek state budget envisages a GDP growth rate of 1.8% next year from 5.6% in 2022, with the country's GDP expected to rise to €224.134 billion in 2023 from €210.170 this year.

Elsewhere, the timetable for the final adoption and disbursement of 102,000,000 US dollars from the United States International Development Finance Corporation (DFC) for Elefsina shipyards has been approved, Development and Investments Minister Adonis Georgiadis said on Wednesday.

"Yesterday, in the presence of the Elefsis Shipyards workers' Union and the mayor of Elefsina Argyris Economo, we met a delegation of DFC which came to examine the progress of the Shipyards consolidation programme," he said.

"We agreed with the investor and his group on the timetable of the final adoption and disbursement of the 102,000,000 US dollars. Everything is progressing smoothly. The workers left happy after their pledges," the minister added.

Meanwhile, Eurogroup reached a historic landmark decision for Greece, Finance Minister Christos Staikouras said on Tuesday.

Speaking to Parliament, through a teleconference from Brussels, Staikouras said: "Today is a good day for the country, the society and citizens with the acknowledgement of their long-time sacrifices by the institions and all partners."

"Yesterday, the Eurogroup reached a landmark decision, an historic one as it was characterised by the head of the Eurogroup, the vice-president of the Commission Paolo Gentiloni and the head of the European Stabiity Mechanism," he added.

This was an acknowledgement of the progress made by the Greek economy, its strong resilience in a difficult period with external crises and its positive outlook.

It is an acknowledgement of the consistency in implementing reforms and the efficiency of implementing a national plan of the Recovery and Resilience Fund, the FinMin said.

He stressed it was significant that a further debt relief was achieved, worth 6 billion euros, along with a permanent zero interest rate margin from 2023 onwards.

"We will continue working with a plan and responsibility, with confidence in our capabilities and fully aware of the difficulties, to make Greece stronger and its economy more dynamic, productive, extrovert and socially fair," Staikouras said.

The minister said that the government will continue resolving problems in the best way possible, based on economic efficiency and social justice.

Commenting on a new draft bill tabled to Parliament, he said it ensured that the state will receive more revenue from shipping, while it will offer support to the construction sector and social housing.

Staikouras said the government will offer a 600 euros payment to 61,000 policemen and harbor policemen, while it will offer support to workers in Skaramanga shipyards and LARCO.

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