Greek economy sends positive vibes, end of recession nears

Good news are coming out of the Greek economy as data from the Hellenic statistical authority indicated Wednesday that the country is closer than ever to the end of a crippling six-year recession.

Gross domestic product shrank 0.2 per cent in the three months through June, compared to the same period last year, making it 24 consecutive quarters of decline, after dropping a revised 1.1 per cent in the previous quarter, the Hellenic statistical authority ELSTAT said.

The contraction is the smallest since the third quarter of 2008 and beats the median estimate of a 0.5 per cent drop in a Bloomberg survey.

Analysts of Greek lender Eurobank said in a weekly report that the country’s economy is entering a period of long-term growth. Should Greece’s economy continue to produce primary surpluses, convergence with stronger European economies will occur.

Meanwhile, the Greek finance ministry said that central government budget had a 2.3 billion euro primary surplus in the first seven months of the year. The state budget deficit came in at 1.93 billion euro against a target of 3.36 billion euro.

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