As the analysts of the National Bank’s Economic Analysis Department pointed out, this is the first post-pandemic drop and a correction against the high fluctuation of last year’s monthly performance.
They also pointed out that the actual sales momentum in the specific quarter is 3.0% annually.
Focusing on the rest of the year, April-May maintained a positive real sales momentum at +2.2% versus +3.0% in Q1.
Analysts expect real sales momentum to strengthen to 4.3% in the 2nd half of the year from 2.6% in the 1st half, combined with a positive base effect of 1.4 percentage points in the 2nd half.
Sector Performance
At the sectoral level, positive growth rates were recorded in construction and IT, related to modernization and upgrading actions of the business sector.
In particular the specific sectors moved at +18% and +10% annually (in deflated terms), with the support of the Recovery and Resilience Facility (RRF).
Tourism and other services moved positively, but at a slower pace.
The increase in the sales of the tourism sector was +5%, with a parallel increase in overnight stays by foreign and Greek tourists in the 1st quarter (+7% and +4% respectively).
In the services sector, services that contribute to the transformation of Greek business, such as digital services (information services and IT), showed strong growth, with the highest increases of 16%-21% in deflated terms, consulting & administrative services (+7% and +14% respectively) as well as operations support services (lawyers-accountants +7%, building services +3%).
Trade and industry recorded a decline in activity.
Retail trade, under the pressure of high prices, and industrial sub-sectors prone to climate and supply shocks such as food and metals moved negatively.
