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ATHENS: Official data shows Greece's economy shrank by 1.5 per cent in the second quarter of 2010 compared to the first three months of the year, and by 3.5 per cent compared to the second quarter last year.

The agency said Thursday that a drop in investment and a "significant reduction in public consumption'' contributed to the fall in gross domestic product.

The statistics show a worsening recession as the country tries to emerge from a severe debt crisis that broke out late last year, after the newly elected government revised its budget figures sharply upward.

The agency noted that the method of calculating transactions had changed since the start of 2010, and therefore comparisons with last year's figures should be "used with caution.''