Greek Growth Rate Below Par, Eldorado Suspends Investment

Greece’s growth rate was lower than expected, up slightly by 0.8 percent in the second quarter of 2017 from 0.4 percent in the previous quarter and compared to a 0.5 percent decline in Q2 of 2016, according to the Hellenic Federation of Enterprises (SEV).

In its monthly bulletin, SEV is revising its projection for growth to 1.8 percent in 2017 compared to the initial estimate of 2.5 percent.

At the same time, SEV is underlining the negative contribution of investment to GDP in Q2 down by 2.2 percentage points, with total investment in the first half of the year at 10.5 billion euros, recording a 2.7 percent increase compared to the same period in 2016.

SEV goes on to note that growth in Q2 was driven by private and public consumption, up by 0.7 percent and 3.3 percent respectively, and by exports – up by 9.5 percent, whereas investments dropped by 4.6 percent in that period.

Eldorado Gold to stop Greece investment

The Skouries mine, Photo Source: Eldorado Gold

Meanwhile, in related news, while think tanks are urging the need for investments to boost the Greek economy back to health, the biggest foreign investor in Greece, Canada’s Eldorado Gold said it would suspend operations as of September 22 because of delays by the government in issuing permits for its gold-extraction project at the Skouries site in Northern Greece.

Eldorado has already invested 1 billion dollars in five mining and refurbishment projects in Northern Greece, employing in the meantime some 2,400 workers. The major investment project is already two years behind schedule. Eldorado is “unable to continue investing” in Greece because of the delays, said the Vancouver-based mining company’s CEO, George Burns.