Greece’s economic climate index slightly fell to 110.6 points in June from 111.0 points in May. According to a survey by the Economic and Industrial Research Foundation (IOBE), the decline comes from two business sectors, industry and retail trade, while the consumer confidence index is strengthening slightly, as are the services and construction sectors.
The climate is shaped by various factors, IOBE said. As highlighted in the relevant survey, the results of the European elections caused an increase in political and economic uncertainty in Europe, which seems likely to be maintained in the future. In our country, they affected the political environment, leading to government reshuffle, although on a relatively limited scale. Any effects on economic policy are expected to be seen from the autumn.
In the meantime, the summer season is already generating increased incomes due to the strong performance of tourism and expectations that overall the effect on various sectors on incomes and employment will be strongly positive. Inflation follows a path of gradual de-escalation.
However, the issue of high prices still worries citizens since 58% of households expect a new rise in prices at the same or faster rate and 61% said that they are “barely getting by.” In the coming months, the economic climate will be affected by the growth rate of incomes as well as the prices of products and services.
