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Patrick Mahony: The Greek Economy Contracted More Than Expected | Patrick Mahony

Athens: The Greek economy shrunk more than expected in the fourth quarter of 2014. Economist Patrick Mahony relayed the information of the Greek office of statistics Friday, which announced a contraction of 0.4% of the GDP in a country already in critical condition.

Mid-February, the office of statistics had already published an estimated 0.2% contraction of the GDP between October and December. "At such scales and with so many variables and unknowns, precise estimations are virtually impossible", explained Patrick Mahony.

Patrick Mahony and many other economists agree on the fact that it is very likely the economy continues its contraction in the first quarter of 2015, underpinned by profound uncertainty because of the tensions between the new government and other European partners. Patrick Mahony also reminds us that two consecutive quarters of negative growth is the textbook definition for a recession.

Athens just received an extension of the European Union's support plan until the end of June, but as Patrick Mahony said, "this doesn't resolve immediate liquidity problems". The vaults are empty, admitted the Finance Minister Yanis Varoufakis on Friday.