The Greek SME sector is showing remarkable resilience despite the war in Ukraine affecting the already strained energy and raw materials international markets and supply chains.
According to a recent survey by the National Bank’s Directorate of Economic Analysis, while the blow to Greek companies is proving to be of great breadth and depth, SMEs maintain sound finances and are actively growing.
Survey
In particular, the NBG survey of a sample of 600 companies (April-May) highlights the growing uncertainty affecting the SME sector, with 41% reporting a direct impact of the war (with half saying this is intense).
Highlighting the pressure on prices and adequacy of raw materials as the main hurdles, Greek companies are burdened both due to dependence on Russian and Ukrainian imports but mainly due to the wider turmoil in the international energy and raw materials markets. At the industry level, the blow is most severe in industry and trade, with half of the respective SMEs declaring themselves directly exposed to the current situation (compared to 25-30% in services and constructions).
Under these conditions, the SME Confidence Index dropped by 11 points compared to the previous semester, with the concern focusing on liquidity.
Despite the above signs of deterioration of SME expectations, it is important that the situation at this stage seems manageable, because the Confidence Index remains on positive ground, and the percentage of SMEs with severe liquidity problems remains at a record low of 9.
On a growth trajectory
SMEs manage to stay on a growth trajectory in both the short and medium term planning horizon despite the problems.
According to the NBG there will be rising demand for hiring in the next semester, while for the next five years, sales dynamics are foreseen to grow by 2% per year (compared to the previous five years.
This optimistic view from respondents partly reflects the opportunities opened up through the Development Fund and other related investment programs.
Latest News
September in Greece Winning Tourists Over from US, Germany
Tourists continue to visit Greece off-season into Sept. with the number of inbound travelers up by 6.6% and a 7.9% rise in travel receipts.
Bank of Greece Governor Says EU will Retaliate to Trump’s Tarrifs
The Bank of Greece Governor defended the independence of central banks amid criticism from U.S. President-elect Donald Trump, who had publicly commented on Federal Reserve Chair Jerome Powel
September in Greece Winning Tourists Over from US, Germany
Tourists continue to visit Greece off-season into Sept. with the number of inbound travelers up by 6.6% and a 7.9% rise in travel receipts.
Bitcoin Surges Toward $100K Amid Pro-Crypto Optimism in US
According to Reuters, the cryptocurrency surged to an all-time high, briefly exceeding $96,898 during Asian trading hours.
Greek Driver Violations at a Touch of a Button
Traffic offences recorded in the last five years by Greece’s “Driver Behavior Control System” are now available on Gov.gr Wallet
Milan Tops List of Most Expensive Streets, Athens’ Ermou Holds Steady at 15th Place
In Athens, following Ermou Street is the southern suburb of Glyfada and Tsimiski Street in Thessaloniki.
New Gov.gr Service Enables Secure Reporting of Minor-Related Delinquency
It should also be noted that via the recently introduced initiative ‘Safe Youth’ application citizens have access to specially tailored informative material regarding the safety of children and adolescents
Thousands Strike in Athens Over Soaring Living Costs and Stagnant Wages
Inflation, particularly in food prices, has been crushing Greek households
Greece Overhauls Property Valuation System
Greece plans to launch a revamped property value registry in 2025 and overhaul the way objective values are calculated to enhance tax revenue and improve transparency.
Greece’s New Tax Bill Foresees Tax Relief Beyond Big Business
Tax relief measures in Greece are proposed for freelancers, property owners and farmers, along with 'big business'