Improved competitiveness, successful fiscal adjustment and confidence in the banking system have contributed to the Greek economy’s positive performance in the first quarter of 2018, with the Greek Tourism Confederation’s (SETE) research body expecting GDP growth this year to exceed 2.5 percent on an annual basis.
Based on Institute SETE’s (INSETE) report titled “The Greek Economy, Status and Prospects”, the Greek economy appears to be entering a “stable course of speedy recovery and growth”.
INSETE cites a number of factors including an unexpected GDP growth rate of 2.35 percent in the first quarter of 2018, which restored a more balanced relationship between the growth rate of imports and consumption.
At the same time, the country’s macroeconomic indicators are on a positive course, and all this amid a Eurogroup decision to secure a cushion of liquidity covering Greece’s financing needs for approximately two years and an ECB assessment that Greek banks are adequately capitalised.
Expenditure meanwhile, dropped by 37.5 billon euros due to structural changes.
In conclusion, INSETE notes that commitment to reforms and a clear and concise legal framework are vital for Greece to emerge as a healthy economy. The government, the report says, must now focus on safeguarding the country’s credibility while ensuring competitiveness.