After years of contraction, the Greek economy managed to show the first signs of growth in the second quarter, with the economy expanding by 0.80% against expectations of further annualized losses. The weak economic backdrop has contributed to a continued slide although the revision higher of the first quarter numbers coupled with the strong showing in the second quarter are raising the prospect of a nascent recovery underway. Nevertheless, the imposition of capital controls over the summer might defeat that optimism as withdrawal limits impacted spending and growth across the board. Greece is in the final stages of voting on the latest bailout program which stands as the last hurdle between the country and receipt of a new round of aid. This comes at a critical time with an ECB repayment due on August 20th and no existing bridge financing with which to pay the debt.
Greece Exhibits Expansion
Daily Analysis - 14/08/2015