Greece’s GDP Expands by 7.7% in the Second Quarter

Greece’s gross domestic product (GDP) expanded by 7.7 percent in the second quarter compared with the same period in 2021, data showed on Wednesday.

According to the Hellenic Statistical Authority, GDP increased by 1.2 percent in the second quarter of 2022 in comparison with the first quarter of the year while, in comparison with the second quarter of 2021, it increased by 7.7 percent.

Growth rates of major macroeconomic aggregates based on seasonally adjusted data year-on-year are as follows:

• Total final consumption expenditure recorded an increase of 8.1 percent in comparison with the second quarter of 2021.
• Gross fixed capital formation (GFCF) increased by 8.7 percent in comparison with the second quarter of 2021.
• Exports of goods and services increased by 20.8 percent in comparison with the second quarter of 2021.
• Exports of goods increased by 3.3 percent, and exports of services increased by 47.4 percent.
• Imports of goods and services increased by 15.5 percent in comparison with the second quarter of 2021.
• Imports of goods increased by 17.5 percent, and imports of services increased by 9.3 percent.

Growth rates of major macroeconomic aggregates based on seasonally adjusted data in volume terms quarter on quarter are as follows:

• Total final consumption expenditure increased by 1.2 percent in comparison with the first quarter of 2022.
• Gross fixed capital formation (GFCF) decreased by one percent in comparison with the first quarter of 2022.
• Exports of goods and services increased by 2.5 percent in comparison with the first quarter of 2022.
• Exports of goods increased by 2.4 percent while exports of services increased by 7.2 percent.
• Imports of goods and services increased by 5.8 percent in comparison with the first quarter of 2022.
• Imports of goods increased by 5.6 percent while imports of services increased by 7.6 percent.

“In one of the most difficult and tumultuous periods of modern world history, the Greek economy has not only shown resilience, but is becoming stronger, and even presents favorable prospects, given of course the significant challenges of the time,” Finance Minister Christos Staikouras said on Wednesday, commenting on ELSTAT’s release of the GDP figures for the second quarter.

Staikouras pointed out that, after the latest data, GDP growth in 2022 will be higher than the initial estimates.

He added that the priority of the economic policy is “dealing with the energy crisis and its effects so that we can overcome this test and continue on the path of high and sustainable growth, the creation of many well-paid new jobs, and the strengthening of social cohesion.”

UBS raises growth forecast for Greece’s GDP

Last month UBS, the Swiss-based investment bank, considerably raised its growth forecast for Greece’s GDP for 2022.

UBS raised its estimate to 5.7 percent from four percent based, among other factors, on the dynamic recovery of the tourism sector, which, it expects, will post record-breaking revenue of €20 billion—better than the €18 billion achieved in 2019 prior to the COVID-19 pandemic.

The first sign that growth would be higher than expected this year was a strong first quarter. GDP rose 2.3 percent quarter-on-quarter and seven percent on an annual basis.

Then came tourism; UBS had estimated 2022 revenue at €15 billion, still a significant rebound from the lockdown-plagued year of 2021 (€10 billion).