Economic sentiment is improving


Households and corporations are more optimistic about the short-term course of the Greek economy according to an economic sentiment survey conducted by the Foundation for Economic and Industrial Research (IOBE) for July.

Last month’s reading of the Economic Sentiment Index rose to the highest level since February 2015 (just after the leftist-led government was formed), reaching 98.4 points from June’s 94 points. IOBE estimates that this is an indication that the economy will pursue a positive course in the second quarter of the year.

The same survey also recorded a gradual drop in pessimism among corporations and consumers, which IOBE attributes to the completion of the second bailout review, the disbursement of most of the bailout tranche and the strengthening of the impression that the program is on course, despite the delays.

The improvement in expectations and in consumer confidence appears to be linked to the momentum of incoming tourism and growth in the economy’s exporting sector.