February 14, 2013 / 11:21 AM / in 6 years

UPDATE 2-Greek Q4 GDP slumps 6.0 pct y/y, unemployment hits record

* Q4 2012 GDP shrinks 6.0 pct - flash estimates
    * Unemployment hits 27 pct, youth jobless rate at 61.7 pct
    * GDP expected to shrink more than 4 pct again this year

    ATHENS, Feb 14 (Reuters) - Greece's economy shrank 6.0
percent in the last quarter of 2012 from the same period a year
earlier and the jobless rate hit a record high of 27 percent,
data from Eurostat and Greek statistics service ELSTAT showed on
    The economy, which has shrunk 20 percent in real GDP terms
since the recession began in 2008, is likely to contract again
this year as the country implements the tough austerity policies
demanded by its international lenders.
    Greece's young people have been hit particularly hard by the
grinding recession, with a whopping 61.7 percent of those aged
15 to 24 out of work based on the data, driving up the
popularity of parties that oppose the country's bailout deals.
    "It is a pretty disappointing figure which may not
constitute the peak of the cycle, as unemployment is usually a
lagging indicator of economic activity," said Eurobank economist
Platon Monokroussos.
    Greek unemployment was more than double the euro zone's
average rate of 11.7 percent in November, and the highest in the
17-nation bloc.
    The data showed that 1.35 million Greeks were officially
without work in November, more than three times as many as five
years ago.
    Economists expect even more job losses. On Thursday the
Centre of Planning and Economic Research (KEPE), a state
think-tank, forecast that the unemployment rate will climb
further to 30 percent.
    The slump in economic output in the last three months of
2012 followed a revised 6.7 percent decline in gross domestic
product (GDP) in the third quarter and a 7.1 percent contraction
in 2011.
    The latest figures bring the full-year 2012 contraction to
6.45 percent. Athens projects the 195 billion euro economy will
contract by 4.5 percent this year. KEPE projected a slightly
milder decline of 4.1 percent.
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