Tourism, Consumption Boost Greece GDP in Q2

Tourism and consumption boosted Greece’s GDP for the April to June period by 0.8 percent compared to the first quarter of 2015 and by 1.4 percent compared to the second quarter of 2014, according to figures announced on Thursday by the National Statistical Service (ELSTAT).

According to the report, Greek consumers appear to have reacted to the lingering instability due to the ongoing bailout negotiation process and to the rumours of imminent capital controls by choosing to increase spending and short-term investments instead of cutting costs, which in turn boosted the GDP.

ELSTAT cites three reasons for the 1.4 percent growth rate year-on-year: the increase of sales in retail trade by 3.3 percent in April 2015 compared to the same month last year, with the volume of sales up by 1.9 percent. The increase in the number of sales of new motor vehicles, up in May by 27.9 percent compared to the same month last year. And the rise in the number of foreign tourist arrivals to Greece, up by 4.3 percent in the second quarter of 2015, compared with the corresponding period last year, reaching 4.8 million travelers this year.