SEV: Direct growth initiatives are necessary

SEV: Direct growth initiatives are necessary

Athens, July 12, 2016/ Independent Balkan News Agency

By Spiros Sideris

“The data released last month, primarily reflect the optimism in the market created by the agreement for the disbursement of the 1st tranche of the 3rd adjustment program which is expected to increase the liquidity of businesses, but also they mirror concern for the impact of the measures adopted on business and household incomes “.

This is highlighted by SEV in its monthly bulletin which cites the “the positive change in industrial production in May, the rise in the economic sentiment indicator in industry, stabilization of retail sales and reduction of unemployment mainly due to recruitment in accomodation, dining and commerce ahead of the tourist season”.

On the other hand, SEV notes, “there is a significant decline in exports in May; in April turnover in industry declined, while in the same month a shortfall in receipts from tourism and transport was recorded because of capital controls, as many transactions are made outside the Greek banking system. Also, household deposits – after the rise in April because of the Easter bonuses paid in May 2016 – showed a negative flow (-840 mln. Euros), returning to deposit outflow levels observed in autumn 2015 and March 2016”.

The Hellenic Federation of Enterprises mentions that the result of the referendum in the United Kingdom creates an unstable European environment, both in economic, and geopolitical level, with consequences that have not yet been clarified.

“The almost inevitable slowdown of the European economy as a consequence of the UK’s decision to leave the European Union, will diminish investor interest and may affect the balance of trade and tourism in Greece. Although it is estimated that the direct impact on the Greek economy will be relatively limited, it is necessary to undertake direct growth initiatives, to turn the a page in the country and get to growth” SEV says.