The economic climate index remained at the level of the previous month in February, at 114.0 points (from 114.2), close to the historical maximum level of the last 21 years, according to the Foundation for Economic & Industrial Research – IOBE.
In the euro area and the wider EU, the economic climate has improved slightly. It is stressed that the results of the current survey have not been affected by recent developments in Ukraine. Business expectations improved in Construction and Services, while they deteriorated in Retail Trade and Industry.
The reinstatement of mild restrictive measures did not meet expectations in the tourism sector. On the other hand, expectations deteriorated in all activities of the Retail Trade, mainly in Clothing-Footwear and the vehicle trade. In Industry, the rise of the previous period is assimilated, also at a historically maximum level of more than 20 years.
However, consumer confidence strengthened further slightly in February, mainly because households were anticipating an improvement in the country’s economic situation as a whole, but not their own financial position. The conditions in the Greek, but also in the world economy in the coming period, will depend critically on the developments around the invasion and the war in Ukraine, with the final consequences being premature to be assessed.
While heavy impacts on energy costs are already emerging, broader and stronger geopolitical and economic implications are likely in the medium term to affect global trade flows and relations. A critical factor for economies will also be policy responses at the level of international organizations and by central banks, while the budgetary margins of government response are relatively limited after a two-year pandemic.
In more detail:
– In industry, the mildly positive balance of estimates for orders and demand fell sharply, inventories for estimates escalated marginally and positive forecasts for production in the coming months escalated significantly.
– in Construction, negative output forecasts fell sharply, while employment forecasts improved slightly.
– In Retail Trade, estimates for current sales fell sharply, with stocks escalating sharply, while positive forecasts for short-term sales changed significantly.
– in Services, positive assessments of the current state of the business remained high, those of demand strengthened significantly, and forecasts for short-term demand improved significantly.
– in Consumer Confidence, the negative forecasts of households for the economic situation of the country fell slightly while the corresponding ones for their own financial situation within a year deteriorated. At the same time, estimates for major markets have improved significantly and the intention to save slightly improves.
Latest News
Critical Week for Greece-Cyprus Cable
The study concluded that the social benefits of the interconnection, totaling 8 billion euros, far outweigh its 1.9 billion euros construction cost, resulting in a net social benefit exceeding 6 billion euros.
Roberta Metsola Re-elected President of European Parliament
Her second term will be for a period of two and a half years
ELSTAT: 1.5% Increase in Business Turnover in May 2024
The most significant increase in turnover in May 2024 compared with May 2023 was recorded from the enterprises of the Accommodation and Food Service Activities, sector which grew by 14.8%.
Cosco: Container Traffic Decline at Piraeus Port Continues
This strategic shift has diminished Piraeus's standing as a prominent Mediterranean port and a key transshipment hub post-Suez Canal.
Gov’t Eyes Return of Power Subsidies Amid Spike in Rates
According to reports, the government will resume an electricity subsidization program, given that forecasts cite disruptions – i.e. higher rates
ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock
The 6.3% rise in May 2024 is largely driven by an 8.8% increase in the crop output group, particularly due to changes in olive oil prices, and a 0.5% increase in the animal output group.
Balkans Blackout Highlights Climate Threats to Power Grids
The surge in electricity demand during the heat wave and the power deficit in Balkan markets have driven up prices in the Greek wholesale electricity market.
Greece in Top 4 Destinations Favored by European Tourists
Greece was selected by 5.9% of respondents who were asked where they would vacation this year, up from 5.4% in the same survey last year
Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive
The international ratings firm raised Greece to investment grade in early August 2023
First Seaplane Test Flights to Skopelos, Alonissos, Skyros
After decades of on-again, off-again efforts to schedule regular seaplane routes to Greece's numerous island and coastal destinations the prospect now appears within sight