Greek economy shrank by 6.2 percent on a year- on- year basis in the first quarter of 2012, the Greek Statistical Authority said Tuesday, as the country struggles to exit recession, restore growth, overcome the two-year acute debt crisis, avert default and stay in the eurozone.

In the fourth quarter of 20111 the Greek GDP (gross domestic product) had contracted by 7.5 percent and the yearly average for 2011 stood at 6.95 percent, the Authority's Press statement noted.

The European Union (EU) has predicted that the Greek GDP will shrink by 4.7 percent in 2012, the fifth year of recession for the country, while retun to growth is expected by 2014.

Critics of the austerity terms of the EU/IMF bailout agreements attribute the recession to the waves of salary and pension cuts and tax increases imposed on Greek households and entrepreneurs as part of efforts to address the debt crisis.

Anti-austerity parties benefited in the May 6 parliamentary elections that gave no party parliamentary majority, forcing a round of talks among party leaders for the formation of a coalition administration to lead Greece and avoid repeat polls in June.