Europe

Europe

Greek economy hits new low

12 August 2011 22:36 (UTC +04:00)

Baku-APA. The Greek economy has suffered a steep year-on-year contraction for the second quarter of 2011, nearly one-and-a-half percent more than the first quarter losses, APA reports quoting Press TV.

According to the state statistics agency ASE, the Greek economy fell by 6.9 percent during the second quarter of this year, AFP reported.

The agency says that the contraction follows a fall in domestic demand as the effects of recent austerity measures imposed by the Greek government begin to show.

The EU expects the country’s public deficit to reach 9.5 percent of its gross domestic product (GDP) and for its economy to shrink by 3.5 percent.

It was announced on Thursday that country’s unemployment rate had reached 16.6 percent.
.
The new figure was released while Greece has predicted a three percent contraction for the year.

The economic turmoil in the Eurozone has already forced Greece, Ireland, and Portugal to receive rescue packages from the European Union and the International Monetary Fund.

This is while Italy’s economy is twice as big as the three combined, and analysts believe if Rome succumbs to its debt crisis, it would entail catastrophic consequences for the Eurozone.

Greece is facing its third year of recession caused by Athen’s economic collapse, widely blamed on the government’s austerity measures.