Friday Jan 30, 2015 Search
Weather | Athens
16o C
13o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Fragile recovery within sight, says German lender

It was by a hair-thin margin that the Greek economy missed recording positive growth for the first time since 2008 in the second quarter of 2014, the German bank Berenberg said in an analysis on Wednesday.

Nevertheless, it noted that the slight contraction of 0.2 percent in gross domestic product (GDP), announced on Wednesday, was the smallest in the six-year period and strengthens hopes that Greece could achieve the first actual rise in GDP this year since the crisis began. Even more important, according to Berenberg, is the fact that if the data were seasonally adjusted (which the Hellenic Statistical Authority does not do), then Greek GDP would have risen by up to 0.5 percent in comparison to the first quarter of 2014.

This signals the end of recession and the first recovery in GDP after a brief spell late in 2009. Nevertheless, the ongoing revision of official statistics is expected to be finalized in September and may lead to significant changes in post-2012 data. In other words, caution is advised in reading the data announced on Wednesday.

Despite the positive signs that Greece is indeed exiting the recession, such as in the Economic Climate Index and the Purchasing Managers Index, its effects will continue to be felt for a considerable time yet, the analysts believe.

Unemployment rocketed from 7.6 percent in 2008 to 27.9 percent in September 2013 and has only just started receding, down to 27.2 percent in May. The insecurity felt by working people has had a negative effect on consumption and, despite the adoption of a wide range of structural measures, the steep rise in taxation continues to dampen investment.

It is likely that, for one more year, Greece will have to rely on a very good tourism season in order to return to growth, Berenberg says. An improvement in the growth rate is unlikely to limit the most serious threat to a Greek recovery that is, political instability. Only a rise in employment and a robust recovery are seen offering the present fragile government a good chance of winning the next election.

ekathimerini.com , Thursday August 14, 2014 (16:33)  
Berlin: Greek aid extension only makes sense if Athens upholds reforms
Pimco says Greek bonds illiquid, volatile until accord reached
Draghi deflation challenge underlined as prices plunge by record
Greek bonds rise a second day after debt negotiation assurances
Ex premier Karamanlis said to reject SYRIZA offer for presidential candidacy
Former conservative premier Costas Karamanlis has rejected an overture from the SYRIZA-led government for him to be a candidate in another round of presidential elections next month, Kathime...
Greek cleaners show dichotomy of Tsipras as markets tumble
On a sunny Wednesday morning in Athens, two days after Alexis Tsipras became Greek prime minister, workmen dismantled the barricades that had protected the Parliament and its ceremonial guar...
Inside News
SOCCER
Olympiakos draws AEK in Cup quarterfinals
The dream draw of Olympiakos vs AEK in the quarterfinal materialized on Friday, as two of the capital's three giants will face off in a two-leg tie for a place in the semifinals of the Greek...
BASKETBALL
Below-par Olympiakos succumbs to Efes
The winning streak of Olympiakos in the second group stage of the Euroleague ended on Thursday in Turkey, as Anadolu Efes outclassed the Reds in the second half to win 84-70. Olympiakos had ...
Inside Sports
INTERVIEW
SYRIZA must come up with pragmatic solutions, Schulz tells Kathimerini
SYRIZA must realize that it is now the Greek government, not a party running an election campaign, European Parliament President Martin Schulz, the first European official to visit Greece ...
COMMENTARY
Strange haste
The members of the new government must have a lot of confidence in themselves. Several days before announcing his program, Prime Minister Alexis Tsipras and his cabinet have opened up a mult...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Ex premier Karamanlis said to reject SYRIZA offer for presidential candidacy
2. Berlin: Greek aid extension only makes sense if Athens upholds reforms
3. Pimco says Greek bonds illiquid, volatile until accord reached
4. Greek cleaners show dichotomy of Tsipras as markets tumble
5. Draghi deflation challenge underlined as prices plunge by record
6. Greek bonds rise a second day after debt negotiation assurances
more news
Today
This Week
1. SYRIZA must come up with pragmatic solutions, Schulz tells Kathimerini
2. Why Greece went left while Europe turns to right
3. Greek government's signals very mixed, ECB's Jazbec says
4. EU's Schulz: Greece should follow EU line on Russia
5. Capital flees Greece at fastest pace since 2011
6. Monastiraki restaurant fire prompts panic, restricted before spread
Today
This Week
1. Greek Elections 2015 | LIVE
2. SYRIZA heads for historic victory but without majority
3. Greek Elections 2015 | LIVE
4. Greek Elections 2015: The day after | LIVE
5. Poll shows SYRIZA leading ND by 4 pct
6. SYRIZA's win will test institutions
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.