And while in Europe, but also in Greece (which follows faithfully what the EU wants) are moving at a rate of recession of at least 10% as they have a central policy to close the economies, the US of President D. Trump growth is rapid especially in the last quarter, crediting the American president for dealing with the coronavirus crisis without dissolving the economy.
So at the moment that the USA records a growth record since 1947 (!) in Greece we have a record of negative change of the last 25 years.
US GDP recovered in the third quarter at a rate of 33.1% (with its reduction on an annual basis), according to the first estimate announced today by the Ministry of Commerce.
This is the fastest rate since 1947, which followed the historically largest decline in GDP by 31.4% in the second quarter.
The US government has allocated more than 3 trillion dollars to mitigate the impact of the pandemic by fueling consumer spending, although the full recovery will take another year.
Donald Trump commented on the incident, in a festive mood (as his instructions and plan saved jobs) on Twitter, launching an attack on Joe Biden as well.
At the same time, the Eurozone deficit rose to 11.6% of GDP from 2.5% in the first quarter of 2020 and continues the downward trend (including in Greece) that are moving, almost en masse, to new lockdowns.
The eurozone budget deficit and public debt soared in the second quarter of 2020 due to Covid-19 restrictive measures, according to data released by the European Statistical Office (Eurostat) on October 22nd.
The general government deficit in the Eurozone rose to 11.6% of GDP from 2.5% in the first quarter of 2020.
Greece (187.4%), Italy (149.4%), Portugal (126.1%), Belgium (115.3%) had the highest public debt as a percentage of GDP at the end of the second quarter. France (114.1%), Cyprus (113.2%) and Spain (110.1%), while Estonia (18.5%) and Luxembourg (23.8%) has the lowest.
The position of Greece
A recession of 10% in the third quarter of this year and a contraction of GDP by about 7% in the 4th and last quarter is expected by the government’s financial staff. The year is expected to end with a total recession of 8.2%.
In contrast to what happened in the first half of the year, for the second half of the year the economy is expected to shrink at a faster pace compared to the corresponding one that will apply to the rest of the Eurozone countries.
If the estimate is confirmed, third-quarter GDP will return to levels below € 44 billion on a quarterly basis (and at constant prices), a performance that has been around since 1998, when Greece still had the drachma as its national currency coin.
Double-digit negative change during the strongest quarter of the country (due to tourism) has never been recorded in the last 25 years, which means that the pandemic marks the Greek economy with another negative record.