ATHEN--Greece's economy expanded at a slightly faster pace in
the third quarter than previously expected, the national statistics
service said Friday, confirming that Greece has returned to growth
after six years of recession.
According to revised data by the Hellenic Statistical Authority,
or Elstat, gross domestic product in the July to September quarter
rose 1.9% from a year earlier. In its previous third quarter flash
estimate from earlier this month, Elstat said the economy grew at a
1.7% rate.
Accounting for seasonal adjustments, Elstat said GDP rose 0.7%
from the second quarter, unchanged from its previous estimate.
Until this year, Greece's economy has been wallowing in a deep
recession, made worse by waves of austerity measures to fix its
public finances in exchange for two successive international
bailouts worth 240 billion euros ($300 billion). Six years of
recession have shrunk Greece's economy by roughly 30% since its
peak in early 2008 and left more than a quarter of the workforce
unemployed.
But a record tourist season, that saw the arrival of more than
21 million overseas visitors this year, helped return Greece's
economy back to growth. Fresh retail sales data for September, also
released Friday, also show a modest improvement in consumer
sentiment.
According to the data, retail sales volumes at constant prices
rose 2.2% on year in September, as shoppers spent more at
supermarkets and at book and stationary stores at the start of the
back-to-school season. But on a month-on-month basis, retail sales
were down 9% from August as the summer discounting season drew to
an end.
Technically, Greece's economy exited recession in the second
quarter, growing 0.4%, according to revised year-on-year data that
follow Europe-wide updates to national accounting methodologies. On
a seasonally adjusted basis, and using the new accounting
methodologies, Greece's economy also recorded a 0.8%
quarter-on-quarter growth rate in the first quarter of the
year.
For the full year, Greece and its international creditors--the
European Commission, the European Central Bank and the
International Monetary Fund--expect the economy to grow 0.6% before
picking up to expand 2.9% in 2015.
Some private sector economists expect Greece's economy to
surpass the official forecasts for this year.
Write to Alkman Granitsas at alkman.granitsas@wsj.com
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