Management consultants were most optimistic over the medium-term prospects of the Greek economy, Hellenic Association of Management Consulting Firms (SESMA) said in its quarterly report released last week.
This development reflected a relief after better than expected economic trends, a continuing slight fall in unemployment and an increase in tourism, along with commitments made by the Greek government in a new agreement signed with its creditors.
Vasilis Regouzas, president of SESMA, presenting the report during a news conference, said that “2016 will be better than 2015” and based his estimate on a gradual restoring of smooth operation in the banking system, better execution of the state budget, implementation of a privatization programme and anticipated pension reform. The survey showed that the GMCCI (economic sentiment index) grew in the fourth quarter of 2015, compared with the previous quarter, although the index remained at negative levels in 2015, lower compared with 2014 levels.
Expectations on economic trends
Management consultants were less pessimistic over their expectations on economic trends in the fourth quarter, with the ratio of positive/negative answers falling to -10.2 pct from -12.5 pct in the third quarter of 2015. The majority of consultants expect the economy to show minimum change in the next 12 months, while expectations over unemployment deteriorated. The difference between positive and negative answers on private investments remained unchanged at -18 pct. Expectations over corporate funding in the next 12 months improved, a development related with a successful recapitalization exercise by Greek banks and expectations over the activation of EU-funded programmes.
Volatility in the taxation system and over-taxation were the biggest hurdles in business activity in the country, the report said, followed by an inefficient public administration.
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