SEV: Legislation of prior actions positive for the Greek economy

The forthcoming legislation of the prior actions in Parliament – in a vote to be held later on Monday – is expected to remove lingering uncertainties and further strengthen Greece’s outlook for a stronger recovery in 2018, the Hellenic Federation of Enterprises (SEV) said in a report released on Monday.

In its monthly economic bulletin, SEV said that the year began with the economy strengthened by the dynamism of Greek exports, which were boosted by a stable improvement in the European economy, and which had fueled manufacturing growth. Additionally, growth in tourism, initially due to geopolitical developments, had become more and more established while transport and logistics were gaining ground as Greece gradually became a European trading hub following the privatisation of its ports, airports and railroad, SEV noted.

The report stressed that the Greek economy has embarked on a recovery course, with its dynamism supported by increasing flows of foreign direct investments (up 3.1 billion euros in the January-October 2017 period from 2.3 billion in the same period in 2016). This process was enhanced by the successful implementation of Greece’s adjustment programme at a time when Greece was returning to capital markets, paving the way for the stronger financing of Greek enterprises and banks.

Investments remain the weak spot of recovery, SEV said, with all categories except transport still on negative ground, although significantly improved compared with previous years. Once the third programme was completed, SEV added, it was imperative to avoid a return to the mistaken fiscal and market operation policies of the past, especially in relation to labour. If Greece’s competitiveness failed be to strengthened, the whole plan for transforming the country into a extrovert economy was in danger of failing and any increase in incomes and employment would prove temporary, the report said.