Greece Expects ‘Strong Recovery’ for Economy After GDP Jumps 16.2%

Greece’s economy took a turn for the better in the second quarter of the year, according to data released by the Hellenic Statistical Authority (ELSTAT) on Tuesday.

The country’s gross domestic product (GDP) rose by 3.4 percent against the first quarter of 2021 and increased by 16.2 percent in April-June compared to the corresponding quarter of 2020.

“The strong recovery of the Greek economy is therefore confirmed. Recovery which is even stronger than the initial forecasts,” Greek Finance Minister Christos Staikouras said in a statement.

The minister added that the growth rate for the first half of 2021, is expected around 7 percent.

According to Staikouras, the data, combined with the positive course of all components of domestic demand, ie private and public consumption, investments, net exports and the constant increase of leading indicators such as the economic sentiment, industrial production, manufacturing, construction activity and tourist arrivals, show that the course of GDP this year will be better than the estimates made in the Midterm Fiscal Strategy Framework

Greek Finance Minister Christos Staikouras.

With regard to year on year growth rates, ELSTAT’s data showed that compared with the second quarter of 2020, Greece saw consumer spending grow by 12.1 percent and Gross Fixed Capital Formation (investments) up by 12.9 percent.

Moreover, the exports of goods and services increased by 22.6 percent in comparison with the second quarter of 2020. Exports of goods increased by 17.1 percent and exports of services increased by 28.8 percent.

Goods imports increased by 22.5 percent year-on-year.

Following ELSTAT’s announcement, Greek Prime Minister Kyriakos Mitsotakis took to Twitter and welcomed Greece’s GDP high growth rate:

Greece’s economy surges 16.2% year on year in the 2nd quarter, shattering expectations. Even during a period with partial lockdowns, quarterly GDP is already above pre-pandemic levels. We remain focused on reforms that deliver inclusive growth and raise living standards for all.

— Prime Minister GR (@PrimeministerGR) September 7, 2021