Greece: economic news for September 2019

Greece has finally ceased to control the movement of capital since September 1 of this year. This is an important event that marks the completion of another stage of the country's exit from the recent crisis.

Capital controls in the country were introduced in 2015. Gradually he was softened and canceled completely. The decision of the Central Bank is because more and more Greeks are opening deposits in local banks. According to the latest data, they grew by € 4.4 billion per year. Credit rating agency Moody's said that the removal of capital controls had a positive effect on Greek banks.

GDP of Greece

The Greek economic recovery accelerated in the second quarter to 1.9% year on year due to a 0.8% increase in spending on consumption and a 4% increase in net exports. According to the Greek Statistical Office of Elstat, the country's economy was able to break out of a protracted recession.

Greece's GDP grew by 1.3% in the first quarter of this year compared to the same period last year. The Ministry of Finance informed that the economy has been successfully recovering for the ninth consecutive quarter.

Export growth

Greek exports jumped 7.2% in July from 2018 and now stand at € 3.17 billion. The largest growth is shown in oil refining and chemical industry products, alcohol and tobacco products, and industrial products of various nomenclatures. The export of vegetable oils, especially olive and feta cheese, has been especially noticeable.

Economic sentiment

According to a survey by the Foundation for Economic and Industrial Research, consumer and business confidence in Greece rose sharply in August. Last month, the economic sentiment index reached 108.4 points, compared with 105.3 in July. August figures are the highest since 2007.

Greek Property Prices

According to the Bank of Greece, the volume of residential real estate increased by 7.7% year on year in the II quarter of 2019 compared with 1.3% in the I quarter. In Athens, where investor interest was highest, housing prices rose 11.1% year on year.

Hospitality Investments

Blackstone, an American investment fund, has acquired five hotels in Greece from the Louis Group for a total value of € 178.6 million. Two hotels are located on the island of Corfu, two on the island of Zakynthos and one on Crete. The company plans to invest in the repair and repositioning of hotels.

Source: Enterprise Greece

Subscribe to our newsletter