Business

Greek recession deepens in the fourth quarter

  • 14 February 2012
  • From the section Business
Athens clashes
Image caption Austerity measures have sparked violent protests in Athens

The deterioration of the Greek economy accelerated in the final three months of last year, the latest government figures show.

The estimate showed that, compared with a year earlier, Greek GDP contracted by 7% in the fourth quarter of 2011.

That is an acceleration from the 5% contraction in the third quarter.

The report also shows that the Greek economy shrank 6% last year, an increase on earlier estimates and the fifth year of recession.

Despite Greece's dire economic condition, the government sold 1.3bn euros of debt on Tuesday.

To borrow those funds for three months Greece had to pay an interest rate of 4.61%, slightly less than the previous auction in January.

The Greek government is still working on a new package of austerity measures. Politicians are looking to save another 325m euros from the budget.

Greece has to satisfy its eurozone partners before they will advance Greece any more bailout funds.

Without that finance Greece will not be able to meet debt repayments due on 20 March.