Tuesday, 27 March 2018

Has the Greek recovery really arrived?

It's the moment we've been waiting for since bailouts began: The finance ministry says the Greek economy will turn a corner with 2.3pc growth this year, allowing it to make concessions to the beleaguered middle class after it graduates from the current adjustment programme in August. It points to a 19pc increase in exports in January and a small increase in bank lending for the first time in years. Bankruptcies fell last year for the first time since 2007. Interest on Greece's 10-year bond is 3.32pc, versus 6.79pc a year ago.
Not everyone is convinced, however. Consumer confidence improved last year, but did not lead to higher consumption, and has worsened again this year. Many Greeks are worried that Syriza may overspend once Greece graduates from austerity policies. And they are aware that Greece was forecast to grow by 2.7pc last year, but grew 1.4pc.

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