Greek economy shrinks a further 1.5%

The Greek economy shrank by a further 1.5% in the second quarter of the year, Greece's statistics agency has said.

It adds to the 0.8% decline in GDP recorded for the first three months of 2010, suggesting that the decline in the economy is speeding up. Greece's GDP has fallen 3.5% since the same period in 2009.

Greece's statistics agency Elstat said the "significant reduction" in public spending had contributed to the deepening of the country's recession.

Malcolm Brabant reports.