Greek economic sentiment index up in November

Greek economic sentiment index rose to 113.4 points in November from 112.4 in October, reaching the levels seen in February 2020 before the pandemic, the Foundation for Economic and Industrial Research (IOBE) said on Wednesday.

IOBE attributed this development to a new significant improvement of business expectations in the services sector -to a new 20-year high- while the change in the industrial sector was marginal. On the other hand, expectations worsened in the retail commerce and the construction sectors.

An extended tourism season and a decision not to impose austere restrictive measures despite a surge in the pandemic, seemingly offered a boost to the services sector. The industrial sector is benefiting from a significant recovery in global economy and international trade.

Consumer confidence also improved in November after five months of declines. However, Greek households continued moving in an environment of uncertainty, IOBE said, adding that developments in the pandemic are expected to strong affect business and household expectations in the coming months.

The report noted that growing inflationary pressure, combined with priorities in fiscal and wider policy will also play a significant role as the economy will gradually return from fiscal deficits to surpluses.