Greek economy slips deeper into red with 0.9-per-cent contraction

Athens, Safar 26, 1437, December 08, 2015, SPA — The performance of the Greek economy in the third quarter was worse than initially predicted as it contracted 0.9 per cent quarter-on-quarter, the EU statistics agency said Tuesday, according to dpa.

A contraction of 0.5 per cent had been given by Eurostat in a preliminary report in November.

The statistics represented a retreat for heavily indebted Greece, which this year received its third bailout in five years. It had seen growth of 0.3 per cent in the second quarter while the economy was stagnant in the first quarter, Eurostat said.

One of the reasons for the contraction was the political tug-of-war between Greece’s government and its European partners and creditors over economic reforms and the bailout.

The third quarter is traditionally an important economic indicator for Greece because it includes receipts from the height of the tourist season. In the third quarter of 2014, for example, the economy grew 0.8 per cent, Eurostat said.

Tourist industry analysts said many tourists stayed away this year because of a threat of Greece’s insolvency and talk about a Grexit, or Greece’s exit from the eurozone.

22:29 LOCAL TIME 19:29 GMT