GDP – Strong growth of 13.4% in the third quarter in Greece

Despite the concerns raised due to the Omicron variant, the Greek economy is counting on positive developments near the end of 2021.

According to the seasonally adjusted data of the Hellenic Statistical Authority (ELSTAT), the Gross Domestic Product (GDP) in volume terms, during the 3rd quarter of 2021 is increased by 2.7%, compared to the 2nd quarter of 2021, while in comparison with the 3rd quarter of 2020 the GDP increased by 13.4%.

The non-seasonally adjusted data indiacte that in the 3rd quarter of 2021 the Gross Domestic Product (GDP) in volume terms increased by 13.7% in comparison with the 3rd quarter of 2020.

Τοurism in the 3rd quarter of 2021 played a major role in GDP data, as there was a clear improvement in this sector compared to the 3rd quarter of 2020, eliminating the negative effects of the widening trade deficit due to rising imports and the energy crisis.

Imports of goods increased by 21.7% compared to the corresponding period of 2020.

More detailed data show that:

Quarter on quarter growth rates

• Total final consumption expenditure increased by 0.9% in comparison with the 2nd quarter of 2021.
• Gross fixed capital formation (GFCF) increased by 3.9% in comparison with the 2nd quarter of 2021.
• Exports of goods and services increased by 12.6% in comparison with the 2nd quarter of 2021. Exports of goods increased by 1.4%, while exports of services increased by 29.0%.
• Imports of goods and services increased by 7.3% in comparison with the second quarter of 2021. Imports of goods increased by 3.7%, while imports of services increased by 18.7%.

Year on year growth rates

• Total final consumption expenditure recorded an increase of 7.3% in comparison with the 3rd quarter of 2020.
• Gross fixed capital formation (GFCF) increased by 18.1% in comparison with the 3rd quarter of 2020.
• Exports of goods and services increased by 48.6% in comparison with the 3rd quarter of 2020. Exports of goods increased by 9.2%, while exports of services increased by 84.6%.
• Imports of goods and services increased by 21.7% in comparison with the 3rd quarter of 2020. Imports of goods increased by 10.1% and imports of services increased by 58.1%.

The Eurogroup

This afternoon, the Eurogroup will meet in Brussels, where the report of the 12th assessment of the Greek economy under enhanced supervision will be discussed. This report also linked to the approval of the implementation of the medium-term debt measures.

In other words, the Eurozone finance ministers, taking into account the progress of the reforms noted by the European Commission in its report, will approve the relevant proposal of the Commission for the disbursement to Greece of the sixth instalment of the bond profits (ANFA’s and SNP’s ) held by European banks.

The instalment amounts to 767 million euros and includes the continuation of the appeal of an additional amount of interest that the country would pay for a loan made in 2012, for the repurchase of debt.

With the 12th evaluation being successful, Greece takes another step until the exit from the enhanced supervision regime, something that is expected in 2022.

At the same meeting, the redefinition of fiscal rules will be discussed once again, after the expiration of the 2023 total escape clause, when the limits and fiscal rules for all Member States will be restored.

The discussion will focus on some key issues, such as the review of the criteria for the deficit and, mainly, the debt, after the end of the first quarter of next year.