Greeces economy continued to shrink at a steeper than projected rate during the first quarter of the year. Final data showed that Greek GDP reduced its value by 5.6% during Q1 on annual basis, more than the predicted 5.3% drop. Final Consumer Spending decreased by 8.3%, while the accumulated capital declined by 11.4%. Countrys trade deficit, however, managed to narrow by a rate of 22.9% annually, causing positive influence upon the indicator. Additionally, export dropped by 2.6%, while import decreased by 7.8%. Greece has been struggling with recession for sixth consecutive year. IMF projected that economy will shrink by 4.2% this year, after it registered a 6.4% decrease in 2012.
At the same time, Cypriot economy submerged at a faster pace than expected during Q1. Official data stated that the Gross Domestic Product shrank by 1.4% during Q1 2013, compared to Q4 2012. Preliminary estimates showed a 1.3% drop. This was the seventh quarter in a row, during which Cypriot economy marked a decline. GDP dropped by 4.3% during Q1 on annual basis, after the 3.5% drop in Q4 2012. Negative impact was caused mainly by the difficult situation in construction and industrial sectors. Tourism, banking sphere, transportation and services in Cyprus also recorded drops.
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