Post by Bozur on Apr 10, 2005 4:10:29 GMT -5
2004 GDP growth above forecast; prospects dimmer
Greece’s economy grew by more than 4 percent in 2004, more than double the eurozone average, driven by robust consumption and public spending, National Statistics Service (NSS) data showed yesterday.
But economists said it was likely economic growth would slow down this year, as companies trim their investments and the government reins in spending.
NSS data showed economic growth averaged 4.15 percent last year, up from a flash estimate of 3.9 percent issued last month, and compared with an average of 2.0 percent for the 12 countries of the eurozone. “Some data from previous years were revised and this led to an upward revision in GDP growth. Details of the revisions will be released shortly,” NSS head Manolis Kontopyrakis told Reuters. “Growth was driven by strong consumption and public spending. Exports also contributed,” said EFG Eurobank economist Platon Monokroussos.
The NSS also revised upward earlier estimates of growth of 4.0 percent in the final quarter to 4.2 percent, 3.8 percent in the third quarter to 4 percent, and of 3.9 percent in the second quarter to 4.1 percent. The first quarter figure stood at 4.3 percent, revised up from 4.0 percent.
Last week, Finance Minister Giorgos Alogoskoufis had flagged the upward revision, saying the economy may have expanded more strongly than the NSS’s preliminary estimates. The NSS also revised upward GDP growth in 2003 to 4.65 percent from a previous reading of 4.5 percent and for 2002 to 3.8 percent from 3.6 percent previously.
Monokroussos forecast a slowing pace of economic growth this year, echoing weaker estimates from the Bank of Greece and the International Monetary Fund. “We expect GDP growth in real terms to slow down to 3.3 percent this year on lower fixed-capital investment growth and public spending. There are also external risks, such as high fuel costs and global economic uncertainties,” he added. The Bank of Greece last week forecast annual growth of 3.3 percent this year, while the IMF has a 3.0 percent estimate against a government target of 3.9 percent. The breakdown of 2004 growth showed exports rose 9.9 percent, imports increased 8.2 percent, investments rose 4.8 percent and final domestic demand grew by close to 4 percent. (Reuters)
www.ekathimerini.com/4dcgi/news/content.asp?aid=54006
Greece’s economy grew by more than 4 percent in 2004, more than double the eurozone average, driven by robust consumption and public spending, National Statistics Service (NSS) data showed yesterday.
But economists said it was likely economic growth would slow down this year, as companies trim their investments and the government reins in spending.
NSS data showed economic growth averaged 4.15 percent last year, up from a flash estimate of 3.9 percent issued last month, and compared with an average of 2.0 percent for the 12 countries of the eurozone. “Some data from previous years were revised and this led to an upward revision in GDP growth. Details of the revisions will be released shortly,” NSS head Manolis Kontopyrakis told Reuters. “Growth was driven by strong consumption and public spending. Exports also contributed,” said EFG Eurobank economist Platon Monokroussos.
The NSS also revised upward earlier estimates of growth of 4.0 percent in the final quarter to 4.2 percent, 3.8 percent in the third quarter to 4 percent, and of 3.9 percent in the second quarter to 4.1 percent. The first quarter figure stood at 4.3 percent, revised up from 4.0 percent.
Last week, Finance Minister Giorgos Alogoskoufis had flagged the upward revision, saying the economy may have expanded more strongly than the NSS’s preliminary estimates. The NSS also revised upward GDP growth in 2003 to 4.65 percent from a previous reading of 4.5 percent and for 2002 to 3.8 percent from 3.6 percent previously.
Monokroussos forecast a slowing pace of economic growth this year, echoing weaker estimates from the Bank of Greece and the International Monetary Fund. “We expect GDP growth in real terms to slow down to 3.3 percent this year on lower fixed-capital investment growth and public spending. There are also external risks, such as high fuel costs and global economic uncertainties,” he added. The Bank of Greece last week forecast annual growth of 3.3 percent this year, while the IMF has a 3.0 percent estimate against a government target of 3.9 percent. The breakdown of 2004 growth showed exports rose 9.9 percent, imports increased 8.2 percent, investments rose 4.8 percent and final domestic demand grew by close to 4 percent. (Reuters)
www.ekathimerini.com/4dcgi/news/content.asp?aid=54006