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Greek Current Account Deficit Widens

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Greek Current Account Deficit Widens

The Bank of Greece has just published an update on the nations Current Account balance, year on year for February this figure is showing a deficit of €0.709B following last months €0.295B shortfall.

The Greek Foundation of Economic and Industrial Research (IOBE) has released it’s quarterly report on the economy where it has taken a notably upbeat tone for the first time since the beginning of the crises.

The IOBE are forecasting that the Greek economy is set to stabilize for the first time in six years, the 0.6% growth projection would mean that Greece is set to exit recession after almost half a decade of contraction.

The Athens based institute are projecting that unemployment, which is currently running at twice the European average, will fall by up to one point to just below the 26% level. The resurgent tourism sector in Greece is being credited with leading the current growth spurt, last year saw this sector expand by almost 16% and it’s overweighting in the €180bn economy is ensuring that the upsurge is creating a noticeable impact on the country’s growth figures.

Growth, even moderate, is badly needed in this economy, bail out funds coupled with severe austerity served to contain the economic crises. Debt and unemployment were the immediate side effects of this austerity program. Both of these metrics are now beginning to move in the right direction, albeit slowly.

Greece is finally experiencing some ‘green shoots’ of recovery but still has a long road ahead. The crises has pushed up Government debt levels to almost 160% of GDP and the lack of inflation is making this a difficult to manage situation. Inflation has however risen to -1.10% from a low just shy of -2.9% last year, and there is some evidence that the pace of recovery is accelerating.

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