Coronavirus lockdown shrinks Greek economy in first quarter

ATHENS: Greece's economy contracted in the first quarter of 2020 as restrictions to contain the spread of the novel coronavirus curbed activity, data showed on Thursday.

Gross domestic product shrank 1.6pc quarter-on-quarter, according to the seasonally adjusted data from statistics service (ELSTAT). Year-on-year, the economy contracted at a 0.9pc rate.

The country's central bank sees a 6.0pc recession this year under its baseline scenario.

The European Commission projects economic activity will decline by 9.7pc this year.

"Even half of a month of lockdown measures were enough to weigh on economic activity, although the impact was smaller compared to other euro zone economies," said Nikos Magginas, chief economist at National Bank.

He said the lockdown, which began around mid-March, hit delivered investment and consumer spending but exports were relatively resilient.

Greece emerged from a decade of bailouts in August 2018 and is relying on financial markets to cover itsr borrowing needs.

"We expect the picture to worsen in the second quarter, with a low double-digit decline in economic activity. Our baseline scenario sees a 7.5pc contraction this year," Magginas said.

Much will depend on how fast the economy responds to the lifting of the lockdown and how that affects demand and spending, he said.