Boost for growth as poverty declines

Boost for growth as poverty declines

The state of the Greek economy is increasingly improving, which is reflected in economic indices capturing this reality. As evidenced by the latest figures released, Greek economic growth continues, while exports and foreign direct investment rises and poverty is declining.

The figures

The latest official data shows:

  • The Greek economy recorded a positive rate of change for the sixth consecutive quarter. In the second quarter of 2018, real GDP grew at 1.8% yoy and 2.2% at the six-month level.
  • Employment increased by 2.3% (yoy) in August 2018 and the seasonally adjusted unemployment rate stood at 18.9% compared to 20.8% in August 2017 and 19.1% in the previous month.
  • Exports of goods and services increased by 9.4% yoy in the second quarter of 2018, contributing to GDP growth of 3.0 percentage points. Exports of goods increased by 7.2% and services by 12.2%.
  • Foreign direct investment in the first nine months of 2018 recorded an increase of € 2.8 billion, registering the largest increase since the start of the 2009 crisis. In September 2018, FDI increased by € 167.6 million in August by EUR 126.7 million and by EUR 290.0 million in July.
  • Private consumption increased by 1.0% yoy in the second quarter of 2018, contributing to a 0.7 percentage point increase in GDP, as a result of employment growth and households’ gross (nominal) disposable income of 3, 3% on an annual basis.
  • Income inequality declined in 2017 [reference year 2016]. The uneven distribution of income (Gini coefficient) fell by 0.9 per cent from 34.3 in 2016 to 33.4 in 2017. (0 = equality, 1 = inequality).
  • In 2017, the population at risk of poverty after social transfers stood at the lowest rate since the onset of the crisis (20.2%), recording a drop of 1.0 percentage points compared to 2016.
  • Child poverty registered the largest decrease by 1.8 percentage points (from 26.3% in 2016 to 24.5% in 2017), approaching pre-crisis levels./IBNA