2001 GDP up by 4.1 pct

Greece’s gross domestic product in 2001 grew by 4.07 percent following a 3.7 percent year-on-year increase in the final quarter of the year, provisional figures released by the National Statistics Services (NSS) yesterday showed, putting it close to the official target of 4.1 percent. National output rose by 5.1 percent year-on-year in the first quarter of 2001, with growth slowing down to 4 percent in the next quarter, while the third quarter expansion came to just 3.5 percent, underlining the impact of the global slowdown in the second half of the year on the Greek economy. Fourth-quarter GDP however remained static compared with the previous quarter. Greece’s resilience stood in sharp contrast to other European countries. Data issued by European Union statistics bureau Eurostat on Tuesday showed a 0.2-percent drop in eurozone GDP and a 0.1-percent fall in the EU in the final quarter of 2001 against the third quarter, as declining investments and foreign trade put a check on growth. Fourth-quarter GDP in the eurozone and in the EU rose by 0.6 percent year-on-year and 0.8 percent respectively. Greece’s strong performance last year compared with its eurozone partners’ anemic output, is set to continue this year, economists said, on the back of sustained investments and consumer spending. «The fourth-quarter growth was a significant increase and showed that the Greek economy stood firm during a crucial period,» said Dimitrios Maroulis, economist at Alpha Bank. He said that recent upbeat economic statistics, notably the 7.7-percent jump in private building activity in October and strong retail sales up to November 2001, indicated the domestic economy could continue its upward course this year and even surpass the official target of 3.8 percent. Ongoing projects included in the public investment program, ventures backed by European community funds and others related to the 2004 Olympic Games are also expected to boost the local economy. The fourth-quarter GDP gain was boosted by a 2.7-percent year-on-year jump in final consumer expenditure which accounted for 1.73 percent of total output, a 6.1-percent rise in investments, a 1.5-percent hike in exports and a 1.2-percent increase in imports. Maroulis said that last month’s slight drop in expectations among businesses as reported by the Foundation for Economic and Industrial Research (IOBE) yesterday, was an understandable reaction to the current global uncertainties, but is not expected to affect their investment plans. The economic think-tank said the business climate index in February fell to 101.7 points from 102 points in the previous month, due principally to declining expectations in the construction sector, bringing to a halt three consecutive months of optimistic expectations. In contrast, the industrial and retail sales sectors, as well as consumers, felt more confident about the future. The industrial business expectations index soared to 105.6 points from 100.9 points, while that in retail sales climbed to 100.9 points from 95.7 points.