2017 was a landmark year for the Greek economy, as it ended a multiannual period of economic crisis and recession, bringing it back to the pathway of growth.
More specifically, 2017 is the first year of economic recovery based on healthy sources (exports, investments, reforms and program compliance) that are capable of providing continuity and sustainability to growth.
2018 is also a key year for the Greek economy, since it launches its exit from the Memoranda and the tough guardianship in order to bring it in line with a sustainable, balanced and fair development
Major Economic Indicators
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |
| GDP (Constant prices 2010) | -9,1% | -7,3% | -3,2% | 0,7% | -0,3% | -0,2% | +1,4% |
| Inflation: Annual Average | 3,3% | 1,5% | -0,9% | -1,3% | -1,7% | -0,8% | 1,1% |
| Labour Productivity (EU-28=100)** | 85,5 | 85,9 | 86,9 | 86,2 | 83,2 | 81 | n.a. |
| Unemployment Rate | 17,9% | 24,4% | 27,5% | 26,5% | 24,9% | 23,5% | |
| Public Investments (%GDP)** | 2,5% | 2,5% | 3,4% | 3,7% | 3,9% | 3,2% | n.a. |
| Exports (Goods – Current Prices)* | 24,3 | 27,6 | 27,6 | 27,1 | 25,9 | 25,4 | 28,8 |
| Imports (Goods – Current Prices)* | 48,4 | 49,3 | 46,9 | 48,3 | 43,6 | 44,0 | 50,2 |
* billion Euro
** Source: Eurostat
Source: Hellenic Statistical Authority
Key Developments in 2018
On August 20, Greece successfully concluded the European Stability Mechanism (ESM) economic adjustment programme and was integrated into the normal cycle of the European Semester framework. Greece will also be subject to enhanced surveillance under the EU Regulations. The first post-programme review took place from September 10 to 14. In his keynote address at the Thessaloniki International Fair (TIF), the Prime Minister reiterated Greece’s commitment to maintain fiscal sustainability and the reform momentum and outlined the key policy priorities for the 2019 Budget and beyond. GDP rose by 1.8% yoy in Q2 leading to a growth of 2.2% for the first half of the year. In its scheduled rating review on August 10, Fitch upgraded Greece’s rating by two notches to ‘BB-‘ with a stable outlook. On September 10, R&I also upped the country’s rating by one notch to ‘B’ with a stable outlook. The unemployment rate dropped by 0.2 percentage points (pp) month on month (mom) to 19.1% in June, its lowest level since August 2011. In addition, the employment balance in the private sector improved by 13.3% in the 8-month period. Travel receipts increased sharply by 18.9% to EUR 4.85 billion in the 6-month period due to strong growth in foreign tourist arrivals (+19.1% in the first half ). The turnover index in industry increased further in June by 17.4% reflecting a similar rise in both domestic and non-domestic markets. Building activity (permits) rebounded by 16.2% yoy in June and overall by 7.8% in the 6-month period. In addition, house prices increased for the second straight quarter by 0.8% yoy in Q2. Retail trade and industry confidence indicators registered multi-year highs in August. PMI also reached a three-month high in August. The state budget primary surplus stood at EUR 3.14 billion in the 8-month period overshooting the target by EUR 2.22 billion. The deposit flow of Greek banks remained positive for the sixth successive month with inflows reaching EUR 841 million in July mainly driven by households. Meanwhile, Greek banks’ reliance on ELA funding dropped further to EUR 4.49 billion at the end of August.
