Greek economy sees record contraction of 15.2% in Q2

Greece’s economy shrank 15.2% in the second quarter of the year as a result of a slowdown in economic activity stemming from restrictions to curb the spread of the coronavirus, the Hellenic Statistical Authority (ELSTAT) reported on Thursday.

While the year-on-year contraction was slightly below initial estimates for year-on-year losses in gross domestic product of 16%, it is still indicative of the shock to the economy from the spring lockdown.

The first 15 days of lockdown in early March had also taken a toll on the beleaguered Greek economy in the first quarter, with a GDP contraction of 0.9% compared to the first quarter of 2019 and 1.6% compared to last year’s second quarter.

In its worst-case scenario, the Finance Ministry had foreseen a contraction of 15.7% for the second quarter of the year, with the recession over 2020 as a whole estimated at around 8%, a development that would take the Greek economy back to 2017 levels.