Greek economy shows ‘generally positive’ picture, SEV report says

While the Greek economy is showing a generally positive picture, pending issues regarding the completion of the final review of the Greek programme and lack of clarity on the implementation of economic policy after the programme ends are putting pressure on the country’s growth outlook, the Federation of Hellenic Enterprises (SEV) said on Monday.

In its monthly bulletin on economic developments, SEV cited the increase in industrial production and retail sales, positive signs regarding tourism trends – with a new record in arrivals expected this year – a stabilisation in households’ savings and a strengthening of the economic climate in April. The bulletin noted that, according to the European Commission, Greek economic growth rates were revised downwards in 2018 and 2019 from 2.5 pct to 1.9 pct and 2.3 pct respectively.

“This downward revision, necessary after a weak performance of private consumption in 2017 (+0.1 pct instead of an estimated +0.9 pct), possibly integrated increasing uncertainty over the direction of economic policy after the completion of the bailout programme in the summer of 2018, combined with the resurgence of pressure because of the political cycle,” the bulletin said, adding: “due to an expected cut in pensions by an average 14 pct in 2019, the economy will find it difficult to achieve its growth estimate for 2019 (2.3 pct) without accelerating investment and export activity in a European economy with slower growth rates (+2.0 pct in 2019 from +2.3 pct in 2018)”.