AFP
The economy of crisis-hit Greece shrank by 2.5 per cent, slightly better than an earlier estimate, in the last three months of 2009 compared to output in the fourth quarter of 2008, official data shows.
The 12-month figure is a slight improvement on the previous forecast of a 2.6-per cent contraction in the fourth quarter of 2009.
On a quarterly basis, the country's gross domestic product was down 0.8 per cent in the last quarter of 2009 compared to output in the third quarter, the Esye national statistics institute said.
The figures came as the Socialist government seeks to implement a draconian austerity budget to slash a runaway public deficit and debt that have shaken the eurozone.
The measures have led to protests, including a second general strike on Thursday, which brought thousands of people to the streets and was marked by clashes between police and hooded youths.
In October, the newly elected government revealed a hidden recession, blaming the previous Conservative administration for misreporting data.
The announcement marked the beginning of a crisis on the Greek government debt market which has since become a full-blown crisis for Greece and is posing severe strains within the eurozone.
The country's economy had slumped by one per cent in the first quarter of 2009, 1.9 per cent in the second and 2.5 per cent in the third.
The government said in October last year it expected a contraction of 1.5 per cent this year.
But Capital Economics, an independent macroeconomic research consultancy, said "worse may be to come" for Greece and lowered its own forecast for the Greek economy to a contraction of three per cent from a fall of two per cent.
"For now, at least, Greece has persuaded the European Commission that it can meet its ambitious fiscal target for 2010. But the Greek crisis is far from over," Capital Economics said in a report.
"Indeed, with the economy set to contract sharply this year, additional fiscal measures may be required for Greece to meet its budget goal," it said.
Separately, the statistics office said the unemployment rate reached 10.2 per cent in December compared to 8.9 per cent the same month in 2008. Unemployment was higher in November at 10.6 per cent.
Industrial production fell by 2.5 per cent in January compared output in the same month in 2009 after a decline of 7.6 per cent in December, the office said.
