Greece registered 0.5 percent decline in GDP for the first quarter of 2017. Economists were predicting a smaller increase in GDP during the first quarter but a decline by 0.5 percent has left many surprised about the strength of Greek economy. As Greek government underwent tough time dealing with creditors about bailout package, the announcement of austerity measures has led to decline in business confidence. Greek government needs bailout to pay for bonds maturing this summer.

Greece is staring at massive debt which accounts for 179 percent of its GDP. The government agreed to austerity measures earlier this month but Prime Minister said that he will ask for debt reduction in exchange for austerity measures. The government faces major opposition for agreeing to austerity but creditors have been pressing Greece to reduce expenses.

The national statistics office, Elstat, informed that GDP decline by 0.5 percent compared to same quarter last year. However, compared to last quarter of 2016, Greek GDP declined by 0.1 percent. The European Commission reduced its GDP outlook for Greece to 2.1 percent growth in 2017 last week. 2018 GDP estimates have been revised from 3.1 percent to 2.5 percent.

As per reports, Greece is also planning to return to bond market in 2018. However, strong economic performance will be required to hit the bond markets.