deflator is projected at 0.4%, mostly affected by
low domestic demand, reduced unit labour costs,
and the structural changes that improve the oper-
ation of markets for goods and services. A key pil-
lar for the development of the Greek economy will
also be the realization of reforms aimed at cutting
on red tape and ensuring the smooth operation of
the state. Structural changes will facilitate the
economy’s transition to a new growth model,
which will be based on the production of interna-
tionally tradeable goods and services instead of
the production of non-internationally tradeable
ones, and on savings and investment instead of
consumption. The achievement of this target
requires the smooth operation of product, labour
and capital markets, the creation of a business
environment with low bureaucratic costs and a
more efficient civil service and, third, the
enhancement of investor protection institutions,
designed to make it easier to attract foreign
investors. A major driver for attracting productive
investment is the privatisation programme. The
Greek economy has major challenges to face in
2015, with tourism playing, once again, a decisive
role in regard to the country’s growth.
An improvement in economic sentiment in
Greece and a steep increase in consumer confi-
dence are also recorded by the Conjunctural
Indicators Survey of the Foundation for Economic
& Industrial Research (IOVE) for February 2015.
More specifically, the Economic Sentiment
Indicator of Greece rose to 98.2 in February, from
95.3. However, this month also featured a mis-
match between consumer expectations and busi-
Trade with Greece
38
