The Foundation for Economic & Industrial Research (IOBE) reported that the economic climate index in Greece had improved in January 2025, from 106.4 in December 2024 to 108.6.
According to IOBE, the uptick is primarily attributed to Industry and Construction, with consumer trust showing a more moderate improvement while retail trade appears to be waning after the holiday period.
In the industry sector, the negative outlook for the balance of orders/demand showed a marginal downtick with projections for reserves remaining steady. Predictions for production in the upcoming month were markedly positive.
In construction, negative forecasts regarding business workloads have eased slightly, while positive expectations for employment have strengthened significantly.
In retail, assessments of current sales have improved moderately, with inventory levels rising slightly. However, short-term sales projections have declined sharply.
The overall economic outlook remains positive, as growth rates show no signs of decline and continue to surpass European averages. Inflation is on a downward trajectory and is expected to be lower this year than the previous one, while unemployment continues to decline, positively impacting household real incomes.
However, despite the favorable trends, income levels and the broader economy remain relatively low. A faster recovery from the intense crisis of previous years will require further interventions to increase public sector and market efficiency.
However, external uncertainties persist. Europe is in search of a clear economic direction, while policy measures introduced by Donald Trump, which challenge long-standing international trade norms, could create disruptions with potential effects on the domestic economy.
The interaction between external developments and domestic policy choices will shape the economic climate in the coming months.