NBG: Tourism Helps Propel Greece’s GDP into Positive Territory

Greece’s robust tourism sector is expected to boost the country’s GDP by 1.6 percentage points in 2017 following 0.6 percent growth in the first quarter and 0.8 percent in the second, according to the National Bank of Greece (NBG).

NBG analysts citing recent Hellenic Statistical Authority data attribute the improved economic activity in the third quarter of the year to the significant increase in tourist revenue in the second quarter of 2017.

The estimates are based on an average annual growth rate in tourism revenue of 9 percent during 2017.

The NBG report, which includes assessments of July and August figures, further forecasts that the country’s GDP can grow by 1.7 percent in the third quarter of 2017 year-on-year with the rate reaching 3 percent in the fourth quarter attributing the positive performance to a marked improvement in the economic climate, in construction indicators for August and to the increase in the number of tourist arrivals to Greece in July (up by 5.7 percent at major airports).

In the second quarter of 2017 the Greek economy grew by 0.8 percent compared to 0.4 percent in the first quarter of the year, retaining an average increase of 0.5 percent in the first two quarters. Analysts noted that the positive performance in the second quarter was due to an increase in exports of goods and services, which rose by 11.5 percent due to tourism and shipping.