Economy shrinks by 3.3 per cent

The economy contracted by 3.3 per cent in real terms between April and June when compared to the same period last year as the recession deepened because of a drop in tourists and a decline in global demand.

It follows another contraction of 1.9 per cent in the first three months of the year.

Figures released by the National Statistics Office yesterday showed the recession had not yet bottomed out, contrary to the situation in the eurozone, which experienced a slowdown in negative growth in the second quarter.

The NSO did not provide seasonally-adjusted data to be able to calculate growth on a quarter-on-quarter basis.

In real terms, consumption expenditure between April and June dropped by one per cent when compared to the same period last year while both exports and imports registered declines. Exports dropped by eight per cent and imports by a substantial 19 per cent.

In August, provisional figures released by Eurostat showed the eurozone economy registered growth of minus 4.6 per cent in the second quarter when compared to the same period a year before. It followed on a much steeper decline of 4.9 per cent in the first quarter.

Eurostat also provided seasonally-adjusted data that made it possible to compare the results of the second quarter with the previous one. This data showed that the eurozone's largest economies, Germany and France, had inched back into positive territory by June, possibly signalling the beginning of the end of the recession.