Political uncertainty and the fear of an electoral leap into the unknown resulted in a significant drop in economic sentiment in Greece last month, according to a monthly survey by the Foundation for Economic and Industrial Research (IOBE).
The index reading was at 98.9 points, with 100 representing the divider between pessimism and optimism. This is the lowest level of economic sentiment since last April, while the index had risen to its highest points in six years in 2014.
Although the survey was conducted before the snap polls were announced, the election had largely been taken into account, with expectations reduced across all sectors of the economy. The drop in services and retail commerce was particularly steep.
Consumer confidence, expectations in terms of household finances and the country’s fiscal prospects for the next 12 months have all posted a significant decline, while fears of a rise in unemployment have increased.