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Greek Industrial Production Rises Again

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Greek Industrial Production Rises Again

In a glimmer of light for economic conditions in Greece today’s Industrial Production numbers remained in positive territory for a consecutive month for the first time since the crises began. February’s reading shows annualized growth in these numbers of 1.7%, this is confirmation of the uptick demonstrated by January’s reading of 1.1%.

Any signs of increased activity in the Greek economy will be welcomed not only by the Greek authorities but also no doubt by the countries bailout partners. The Industrial Production statistic is a tangible one, increased business by the countries factories and manufacturing sector will positively impact on the unemployment levels. Currently running at 27.5% Greek unemployment is the highest in the Eurozone and well above the bloc’s average of 11.9%. The good news is that as of now unemployment, which has been rising steadily over the past few years, appears to have peaked and is now falling from it’s high reading of 27.7% set late last year.

The economic crises ground the Greek economy to a halt and the austerity measures introduced to aid the countries recovery have had the effect of significantly curtailing economic activity. Deflation in Greece set in at the beginning of last year, the price index is currently running at -1.10%, which at least is on the road back to growth from the -2.9% seen just 4 months ago.

Thanks to the assistance of bailout funds Greek Government debt has been stabilized at 157% of GDP, again this metric is going in the right direction, moving down from the 2012 high of just over 170%. The progress on this key measurement is not coming from the GDP side, the country’s growth rate is in steady contraction and has been for some time, instead the positive advances are being generated by debt repayments. The current account is volatile and appears to be in deficit as many times as it is in surplus, the important aspect of this however is that, at least so far, the magnatude of the positive months outweighs that of the deficit months giving Greece the ability to pay down the national debt at the impressive rate at which they have been doing.

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