- Nikos Magginas, National Bank economist
Greece's economy surprisingly grew both on an annual and quarterly basis in the second quarter, escaping technical recession, whereas unhealthy high unemployment, deep deflation and political woes were expected to take a toll on the debt-stricken country's economy. Greece's GDP rose 0.9% on a quarterly basis after a revised flat 0.0% growth in the beginning of the year. Measured on an annual basis, the Greek economy expanded 1.7% compared with a modest 0.2% rise seen previously. The nation's economy is predicted to contract 2.3% in 2015 as the third quarter has been particularly harsh due to bank closures and capital controls. Officials estimate GDP to shrink 1.3% next year, citing the latest numbers of the creditor institutions that have been negotiating Greece's new bailout scheme, including the European Commission, the European Central Bank and the International Monetary Fund. Only in 2017 the country's economy is expected to return to growth, adding 2.7% that year followed by a robust 3.1% expansion a year later.
Meanwhile, consumer prices in Germany remained unchanged in August, following the 0.2% gain a month earlier. In annual terms, consumer inflation in the Euro zone's number one economy inched up 0.2% in August, according to the preliminary print. In July, the gauge added 0.2%.
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