Greece

RGE's Q1 2010 Greece Outlook

The sharp downward revision of quarterly growth numbers in late 2009 revealed that the Greek economy entered the current recession in Q4 2008, much earlier than initially expected. While the recession initially proved milder in Greece than in the majority of eurozone countries, due to the economy’s limited reliance on the external sector, Greek GDP continued its downward trend in Q3 2009, registering negative growth of 0.3% q/q. The uncertainty arising from Greece’s unsustainable public finances has weighed heavily on economic activity, suppressing consumer and business confidence. RGE expects Greek GDP to decline by 1.7% y/y in 2009. The economic contraction is set to continue in the coming quarters as the government’s fiscal austerity measures will depress domestic demand thereby exacerbating Greece’s economic woes.

Read the Q1 2010 Greece Outlook.