bursement of funds that will allow for the repayment
of part of the arrears of the public sector, the com-
pletion of the recapitalization of the banks and the
partial alleviation of the credit crunch.
However, the most important development,
according to IOVE, is that “uncertainty regarding
monetary issues has been moderated, at least in
the medium-term, while our partners have emphat-
ically confirmed their will to join the effort of solving
the country’s grave problems”.
Retail trade also reacted positively to these devel-
opments. According to IOVE’s survey, the business
expectation index in retail trade registered a year-
on-year increase in December. Although the nega-
tive assessment of enterprises regarding their cur-
rent sales was slightly improved, two thirds of the
enterprises continue to report reduced sales.
Inventories showed some liquidation trends, while
the expectations regarding sales in the next quar-
ter remained pessimistic. Business expectations
in “food-beverages-tobacco” showed a slight
deterioration, while expectations were markedly
improved in “clothing-footwear” (the extremely
pessimistic sales expectations were moderated,
inventories were reduced, and the percentage of
businesses that foresee a drop in employment
fell from 53% to 34%).
Expectations improved in “household appliances”
and “vehicles”, while no change was recorded in
regard to “department stores”.
The consumer confidence indicator showed a
slight improvement; however, Greek consumers
remain the most pessimistic in Europe, with
Cypriot consumers at their heels. The survey
shows that:
● There has been a slight improvement in the
gloomy predictions regarding the households’
financial situation. Despite this improvement,
though, four out of five citizens believe that
their finances will slightly or markedly deterio-
rate in the coming months, with only 5%
expecting the opposite.
● The forecasts regarding the country’s financial
situation were significantly improved. The per-
centage of consumers who expect the economy
to deteriorate fell to 79% from 84%, while 9% (as
compared to 7%) expect an improvement.
● 41% of consumers believe that prices will
increase in the coming months (down from
45% in the previous month), while 38% (up
from 35%) expect prices to fall.
The survey also identified the market segment that
has been suffering the greatest cuts as households
struggle to make ends meet. This is the field of the
so called “major purchases” (furniture, electric
appliances etc.), where 90% of consumers state
their intention to spend less money for the purchase
of such items during the next 12-months. This 90%
is a historic low, and compares to 82% one month
ago. In contrast, only 1% of consumers intend to
spend more on these items, as compared to 4% in
the previous month.
Trade with Greece
57
”
“
The consumer confidence
indicator showed a slight
improvement; however,
Greek consumers remain the
most pessimistic in Europe,
with Cypriot consumers at
their heels.
