Greek economy contracts by 0.5 pct in Q1

The Greek economy contracted by 0.5 percent of GDP (gross domestic product) in the first quarter of 2017 compared with the same period in 2016 and by 0.1 percent compared to the last quarter of 2016, Greece's statistics authority ELSTAT announced on Monday.

The data released are preliminary and will be revised in early June.

According to the Greek Finance Ministry's new forecasts, the Greek economy will grow by 1.8 percent in 2017 instead of 2.7 percent of GDP as noted in the 2017 budget ratified by Greek MPs in late 2016.

In its latest spring report, the European Commission also estimated that growth in Greek economy will reach 2.1 percent of GDP this year and 2.5 percent in 2018.

Financial analysts in Athens attribute the downturn mainly to the long delay in concluding the second review of Greece's current bailout program.

According to the initial timetable, the second assessment should have closed in February 2016. Athens now expects that the review will close in the forthcoming Eurogroup meeting on May 22 after the ratification of the new package of measures by the Greek assembly later this week. Endit