Economic Sentiment Indicator in Greece Drops Slightly in Dec.

The economic sentiment indicator in Greece recorded a marginal 0.2-point decline in December 2024, according to the Foundation for Economic & Industrial Research (IOBE) easing to 106 from 106.2 in November.

The data revealed that the primary drivers of the slight drop were the industrial and retail trade sectors. Conversely, construction and consumer confidence improved.

The annual economic sentiment indicator in Greece for 2024 averaged roughly 108 points, surpassing the 2023 average of 107.6 and marking the highest level since the 2008 financial crisis. This relatively higher index level is attributed to businesses, which generally reported optimistic expectations across most sectors throughout the year.

December experienced heightened activity primarily in the services and retail trade sectors. In retail trade, however, there were more conservative assessments of demand trends. In services, business activities, particularly in consulting, showed strong growth. This uptick is partly fueled by projects financed by the Recovery and Resilience Facility, which injected significant investments into the market.

Despite the marginally positive trends, international uncertainties weigh heavily on the industrial sector, one of the economy’s most outward-facing domains. Concerns arise from potential increases in protectionist policies in the near term.

The construction sector maintains momentum but continues to face challenges, particularly in labor shortages.

On the household front, expectations improved in December. However, consumer confidence declined on average in 2024 compared to 2023, reflecting ongoing caution among consumers.

Source: tovima.com