LONDON (AP) – Barely a year after emerging from a savage recession comparable in its intensity to the Great Depression in the U.S., Greece’s economy is shrinking again.
The uncertainty generated by January’s general election and the drama over extending Greece’s financial lifeline is helping to push the economy back toward recession despite encouraging signs from the tourism sector, the country’s biggest money earner.
The uncertainty, which started toward the end of 2014 when early elections were called, has damaged confidence among investors, consumers and business owners.
Though few official economic figures for the first months of 2015 are available, surveys suggest the manufacturing sector is contracting as both foreign and domestic clients are more hesitant to make new orders. And the financial system has been shaken by an apparent increase in deposit withdrawals by worried savers, which is seen to have hurt investment.
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