Global crisis worse than expected
Adverse international conditions are having a bigger impact on the eurozone than was initially thought, but the negative effect is beginning to weaken, according to National Economy and Finance Minister Giorgos Alogoskoufis. «The consequences from the international crisis are greater that what was expected until recently,» said the Greek minister in Nice, France, after a Eurogroup meeting. «There are repercussions on economic growth, on the real economy and on inflation. Despite the fact that they are starting to ease, they (the consequences) are still strong,» he added. Greece’s economic growth, one of the strongest in the eurozone, has started to slow as the global slowdown bites into economic expansion. Growth of gross domestic product (GDP) slowed in the second quarter of the year to 3.5 percent year-on-year from 3.6 percent in the first three months of the year, mainly due to a drop in investment and consumption. Last year the figure stood at 4.1 percent.
