Greek economy plunges into recession

The official figures of the Greek Statistical Authority on the development of the Gross Domestic Product are discouraging.

According to its announcement, "based on the available non-seasonally adjusted data, the Gross Domestic Product (GDP), at constant 2005 prices, fell in the second quarter of 2012 by 6.2% compared to the second quarter of 2011. The GDP of the first quarter of 2012 has been revised on the basis of the data of the first quarter of the General Government accounts drawn up in late June, as well as newer estimates of the short-term indicators."

The GDP reduction in the second quarter of the year is far greater than what was forecast by the Troika and shows the increasingly expanding recession. As a consequence, the shrinkage of the Greek Gross Domestic Product is expected to lead to a percentage increase in the country’s debt ratio.