The Greek economy shrank by 1.5% in the second quarter of 2010 compared to the previous quarter, official data showed today as the country strugggles with tough budget action to correct public finances.
Official data implied a sharply worsening slowdown which is expected to lead to a 4% contraction for the whole of this year.
The economy had shrunk by 1% in the first quarter from output in the last quarter of last year when the financial crisis was beginning to overwhelm the country.
The depth of the strains in the economy were shown by 12-month comparisons in the first estimates for the second quarter. On a 12-month basis, output slumped by 3.5%. In the first quarter of the year, the economy had shown a 2.5% contraction from the equivalent figure last year.
The Greek economy is expected to contract by 4% this year according to the European Union and the International Monetary Fund, which have experts in Athens to monitor the crisis recovery plan.
Greece is in a deep economic crisis, having had to adopt drastic austerity measures in an effort to balance the public finances after obtaining a €110-billion rescue package from the EU and IMF.
