Despite prevailing uncertainty there is a stable improvement of economic data in the country, the Federation of Hellenic Enterprises (SEV) said in its monthly bulletin on economic developments, underlining that economic growth returned to positive ground in 2016, such as an improving economic climate, higher industrial production and exports, a rise in retail sales volume (excluding fuel), a slowdown in deflation and a stable decline in unemployment.
“However, this by itself does not discount that the Greek economy will remain on a sustainable growth course, particularly if delays are recorded on implementing reforms and fiscal adjustment. Additionally, positive performances recorded in several indexes in the second half of 2016 are largely attributed to the impact base as the market was under the shock from the introduction of capital controls in 2015,” the Federation said in its bulletin, adding: “An interruption of a second review in early December and a return of uncertainty over its completion, undermined they dynamism created in the second half and forecasts for economic growth in 2017 as well.
Any delay burdens macro-economic scenarios -and negotiations- and acts as a self-fulfiled prophecy of enclaving the economy into a negative spiral of uncertainty and disinvestment. This motive raises hurdles in the return of the economy to stable growth”.
SEV, however, recorded some negative developments, such as an increase in business closures, a high level of state arrears to the market (5.6 billion euros) and of taxpayers’ debt to the state (94.2 billion euros).