Greece’s economy shrinks 6.2% in Q2

Greece’s economy shrank 6.2% on an annual basis in the second quarter, a slump that is expected to persist as the government scrambles to nail down billions in additional cuts to keep international bailout funds flowing.

Currently in its fifth consecutive year of economic depression, Greece is suffering record unemployment with nearly one in four Greeks without a job, undermining efforts to meet revenue targets and reduce the budget Athens is keen to convince eurozone partners and the International Monetary Fund of its will to bring an economic adjustment plan back on track before asking for modifications and more time to spread out the pain of more cutbacks.

But the fiscal drag caused by the pursued austerity policies coupled with liquidity constraints and lingering uncertainty is likely to keep recessionary headwinds in full force.