The Gross Domestic Product (GDP) of Greece fell by 6.2% in the second quarter of 2012, over one year after contracting 6.5% in the first quarter, according to preliminary estimates released Monday by the Athens based Hellenic Statistical Authority.
While the country is experiencing its fifth year of recession, financial institutions have continued in recent months to guard against a recession worse than expected in 2012, the Bank of Greece now relying on an annual fall in GDP of 4.5 %, after falling 6.9% in 2011.
In its latest report on Greece, the European Commission also referred to the 2014 return to growth. The new Conservative government of Antonis Samaras supported by the Socialists and the moderate left has made a return to growth its priority, while unemployment has also soared, reaching 23.1% in May. But the recovery of an economy driven by domestic consumption is constrained by fiscal austerity imposed on indebted country by its funders: the EU, ECB and IMF, and also the delay in structural reforms.
Full story: Greek GDP Falls by 6.2%.