The economic sentiment index in Greece rose significantly in January 2025, reaching a level of 108,6 units From 106,4 in the previous month, according to the latest IOBE economic sentiment survey.
This improvement came mainly from the strengthening of the Industry and of construction, while services and consumer confidence recorded a milder rise. In contrast, the retail trade recorded a decline after the festive period. Despite the positive picture, the problem of accuracy remains a major source of concern for households.
According to the IOBE report, the Greek economy continues to show resilience and development potential, as growth rates remain higher than the European average.
Key positive elements:
✔️ Reduction of unemployment, which supports household disposable income.
✔️ Decline in inflation, with estimates that in 2025 it will be lower than in the previous year.
✔️ Stability in industry and construction, which are the driving forces of the economy.
However, the level of incomes remains relatively low, while the improvement in the economy will depend on the enhancing the efficiency of the public sector, the structural reform of markets and promoting targeted development policies.
Despite internal stability, IOBE warns that developments in the international environment may create uncertainties for the Greek economy.
🔴 European Economy: The EU is looking for a new direction, with several countries facing a slowdown in growth.
🔴 US policies: The new economic strategy of the US administration may cause turbulence in international trade, also affecting Greece.
🔴 Geopolitical Developments: Global instability and inflationary pressures are likely to create new challenges for businesses and consumers.
The combination of these factors, together with domestic economic policy choices, will determine the course of economic sentiment in the coming months.
🔹 Industry: Optimism increased, with estimates for orders and demand improving slightly, while forecasts for production in the coming months improved significantly.
🔹 Construction: Businesses expected more activity, with employment forecasts improving markedly.
🔹 Retail Trade: After the festive period, sales estimates deteriorated, while stocks increased.
🔹 Services: Businesses expressed greater optimism about their current situation, although forecasts for future demand showed a slight downturn.
🔹 Consumer Confidence: People appeared less pessimistic about the overall economic situation, but the intention to save decreased.
The Greek economy continues to move in a positive direction, with strong performance in industry and construction, but also challenges to retailing and consumer confidence.
To maintain the growth momentum, the following are needed targeted interventions in productive sectors, strengthening competitiveness and maintaining fiscal discipline.
The course of the coming months will depend on the stability of the international environment, the European Union policy and the Greece's ability to strengthen the resilience of its economy to external pressures.