Trade with Greece
35
T
he favourable picture painted by the
available data is corroborated by a series
of expectation-related indicators, as well
as the forecasts generated by KEPE’s recession
probability and short-term prediction models.
As far as the prospects of private consumption
are concerned, the continuation and possible
enhancement of the improvement already record-
ed in regard to this fundamental will mainly
depend on securing and preserving conditions of
stability and safety in the domestic economic
environment, as well as on the potential allevia-
tion of the overall financial burden faced by
households.
In regard to the growth of investment and exports
in the short term, KEPE points out that the devel-
opments in these two fields are now expected to
be, to a great extent, interrelated. The dynamic
recovery of investments is a necessary condition
for the further substantial improvement of exports,
with the combination of economic stability and
restored financing to the private sector of the
economy being the key catalyst for developments
in the future.
In a recent report, the European Commission
stresses that the Greek economy returned to posi-
tive growth in the second quarter of 2014, as private
consumption was boosted and exports increased.
Following six years of recession, the Greek econ-
omy returned to growth in 2014, says the
European Commission in its report, pointing out
that the real gross domestic product (GDP)
“increased by 0.4% y-o-y in the second quarter of
2014 and by 1.6% y-o-y in the third quarter, sup-
ported mainly by rising private consumption and
the strong performance of exports, especially
tourism and shipping.” In addition, “investment
increased in the third quarter of 2014 for the first
time since 2008.”
The report also says that the growth momentum
was strong in the second half of 2014, despite the
fact that the early election affected confidence
The prospects of the
Greek economy in 2015
Fighting unemployment, creating a stable tax system,
enhancing extroversion, attracting investment, as well
as promoting innovative business plans, are Greece’s
top priorities in its effort to exit the six-year crisis,
which had tragic consequences for the entire Greek
society. In fact, a survey by the Centre for Economic
Planning and Research (KEPE) shows that the Greek
economy’s prospects of permanently exiting the
recession in the short-term have actually improved.
By Dimitris Christoulias
After six years of recession, Greece
is back on the path of growth
