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Greek Economy Pays for Drawn-Out Talks With Return to Recession

  • GDP contracted 0.1% in 1Q after 1.2% contraction in 4Q
  • Government cuts 2017 growth forecast to 1.8% from 2.7%

Greece’s economy returned to recession in the first quarter as delays in concluding talks between the government and its creditors raised the specter of another debt drama.

Gross domestic product contracted 0.1 percent in the first three months of the year after shrinking 1.2 percent in the previous quarter, the Hellenic Statistical Authority said in a statement on Monday. The seasonally adjusted contraction was 0.5 percent from a year earlier.