The condition of the economy is improving, but still remains in a fragile balance, the Federation of Hellenic Enterprises (SEV) said in its monthly economic developments bulletin.
SEV based its analysis on the winter economic forecasts released by the European Commission which envisaged a lower-than-expected recession (0.0 pct in 2015 and -0.7 pct in 2016) compared with previous estimates and a forecast for a return to positive growth rates in the second half of 2016.
SEV stressed that a faster implementation of an adjustment programme was necessary to avoid the risk of upsetting stability achieved so far, adding that “a trend to stabilize economic activity, which began in the last two months of 2015, continued in January, with business climate improving but still remaining at a relatively low level. At the same time, various challenges put this stability at risk as completion of a first review of the economic programme is delayed with the issues of pension reform and non-performing loans remaining unresolved“.
The Federation stressed that this delay is heightening concern in the market as reflected in a deterioration in consumer confidence and retain sales. At the same time, lack of liquidity and low demand continued pressuring economic activity and risked hurting a recovery and job creation, the report concluded.
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