The Greek economy grew by 2.8% in the third quarter of the year compared with the same period in 2021, but fell by 0.5% on a quarterly basis compared with the second quarter, Hellenic Statistical Authority said on Wednesday.
More specifically, on a quarterly basis, the country's Gross Domestic Product fell 0.5% in the third quarter after rising by 2.2% in the first quarter and by 0.6% in the second quarter. The statistics service attributed the third quarter reading to the negative effects of significant subsidies on energy products, which counterbalanced an increase in gross added value.
Final consumption spending grew 3.6% (households up 6.2% and general government down 3.9%). Private investments (gross fixed capital) rose 7.7%, exports of goods and services edged 0.9% up (goods fell 0.3% and services rose 3%), while imports rose 5.2% (goods were up 8.6% and services fell 4.6%). On a quarterly basis, final consumption spending eased 0.6%, private investors rose 0.1%, exports fell 3.3% and imports eased 0.3%.
The Greek state budget envisages a GDP growth rate of 1.8% next year from 5.6% in 2022, with the country's GDP expected to rise to 224.134 billion euros in 2023 from 210.170 billion this year.
It's been noted that Greek economy is expected to grow by 5.6% in 2022 and by 1.8% in 2023, according to a revised estimate by the Finance ministry, the Fiscal Council said in a report on late November. The report said that the country's GDP will reach 194.850 billion euros in 2023, up from an initial estimate of 194.506 billion. These revised estimates are in line with similar moves forecasts made by the International Monetary Fund (5.2% in 2022 and 1.8% in 2023), while the European Commission expects a 6% GDP growth this year and an 1% rise in 2023.
The forecast for inflation rose to 5% from 3% initially, while private consumption and investments are projected to grow by 1% and 15.5%, respectively (from 1.3% and 16% initally). The Fiscal Council said that a possible recession in EU member states could negatively affect Greek exports of goods and services although an efficient exploitation of Recovery Funds is expected to maintain investment dynamism, with gross fixed capital formation rising by 15.5% in 2023 from 10% in 2022. This forecast is highly related with expectations by enterprises and households and with a rising borrowing cost. The general government's balance is expected to show a primary deficit of -1.6%, in line with EU forecasts this year and to 0.7% in 2023.
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