The Greek economy appears to be slowing down, according to the Hellenic Federation of Enterprises (SEV), which in its H1 2019 “Economics and Business” bulletin notes that the government must now focus on attracting more dynamic investments and outward-looking business activity.
Referring to GDP growth of 1.5 percent as reflected by stagnant consumption (-0.1 percent), a 0.7 percent decline in retail sales volume and a 2.6 percent decrease in Q1 turnover in the services sector, SEV analysts underline the importance of generating growth through a focus on “internationally tradable” sectors and reversing the negative contribution of net exports, as recorded in H1 GDP.
“Reforming the economy requires bold actions and rift,” said SEV, welcoming Prime Minister Kyriakos Mitsotakis’ Thessaloniki International Fair pledge to improve the businesses environment and announcements of reduced taxation. SEV notes that the PM’s proactive stance is winning over confidence in the Greek economy.
SEV’s bulletin notes that the first measures taken by the Greek government are likely to strengthen growth and employment in the months ahead.
In the meantime, SEV analysts are expressing concern about a slowdown in investment activity during the first half of 2019, which they partly attribute to the negative impact of the global environment, as well as to lagging domestic investment activity, which, they say, reflects the need for an outward-looking economic strategy.