KEPE: Greek economy has shown significant signs of improvement

KEPE: Greek economy has shown significant signs of improvement

Greek economy presents significant signs of improvement at the macro level, while it gradually regains market confidence, despite the uncertainty in the global economic environment, according to the monthly bulletin of economic development of the Centre of Planning and Economic Research (KEPE).

As mentioned, according to the indications and forecasts by international institutions (IMF and European Commission) and foreign investment houses such as Goldman Sachs and JP Morgan, a return to growth in 2014 is possible. At the same time, quite encouraging data results regarding the implementation of the budget, tourism and industrial production, which grew by 1.8% in May of 2014. Accoring to the study, the main priorities should now be:

-Ensuring political stability for a smooth course of economic activity and ensuring social cohesion.

-Adoption of reforms needed to return the economy to a sustainable development, many of which exhibit significant delays. For example, the completion of privatization and opening closed professions.

-Taking measures to stimulate investment and create new jobs, maintaining financial stability and ensuring the sustainability of public debt. For example, the existence of a stable tax system, the efficient functioning of public institutions and justice. Also dealing with the phenomena of corruption, bureaucracy, tax evasion and contribution evasion through the implementation of the best practices.

The key leading indicators of the Greek economy, as the stock market, interest rate, index of "fear" of KEPE GRIV and confidence indicators showed, according to the report, stabilization by the end of June, reflecting the gradual improvement of the Greek economy. However, as noted, from the beginning of the month, due to geopolitical developments, investment uncertainty for European banks and the political disputes in Greece with regard to specific reforms, such as, for example, in the electricity market, the indicators show a mixed picture.

At the same time, as stressed by KEPE, one of the most important tools for the proper course and development of the economy is the efficient operation of the regulatory framework in the exercise of the credit policy of the banks. Important, as added, is the role of alternative forms of business financing, especially in times of crisis.

In this context, the monthly bulletin emphasizes that the ability of the Greek economy to absorb funds from alternative sources outside the banking system to the economy is an important factor in the current phase, which may help to overcome the crisis and provide businesses the ability to repay their existing loans to (performing and non-performing) banks. "In this way, firms and households can contribute effectively and stabilize the banking system of the country" is highlighted.