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Greece slips back into recession

In a development which is set to affect the European economy, Greece has slipped back into recession with its economy contracting by 0.2 percent in the first quarter of this year.

Greece slips back into recession

This was confirmed by the preliminary data released by the national statistics agency ELSTAT today.

The second consecutive quarterly fall in national output, following growth for most of last year, coincided with political turmoil in the country and doubt over Athens' 240-billion-euro ($270 billion) international bailout.

After weeks of deadlock between Greece's new radical Syriza-led government and its EU-IMF creditors over the reforms needed to release a final 7.2 billion euros in bailout funds has sparked speculation that Athens is not having the required cash and the country may soon end up defaulting, leading to a troublesome exit of Greece from the euro.

The new government has expressed hope that the economy would expand between 0.1 and 0.8 percent this year. it is notable that the beleaguered European nation lost a quarter of its economic output in the six years of recession it suffered from 2008.

Here are the GDP figures:

"Crisis-stricken Greece has fallen back into recession, as the economy contracted by 0.2pc in the first three months of the year. Figures from the country's official statistics agency showed the debt-laden economy was the second worst performer in the 19-country bloc after Estonia. The figures follow a 0.4pc contraction in the fourth quarter of last year, putting the economy officially back into recession."