Foundation for Economic & Industrial Research (IOBE) recent outlook points out that economic sentiment index recovered in March 2024 to 108.4 points, up from 104.9 points in February. It therefore returns to relatively higher levels after the decline recorded the previous month, its highest performance in 6 months.

Among the individual business indicators, a strong improvement was recorded in Manufacturing and a milder improvement in Services, although a «correction in expectations» was noted in Construction and Retail Trade. At the same time, however, the consumer confidence index is also strengthening.

Overall, the economic climate is proving to be volatile at the moment, reflecting the fact that the Greek economy is on a positive trajectory, but faces significant challenges, both externally and domestically. The estimated strengthening of some international trade appears to favour outward-looking domestic industries, as well as service sectors with internationally traded goods. However, sustained momentum in domestic demand appears to sustain relatively positive expectations, although inventories are still generally at high levels.

Among households, slight moderation in inflation and the prolonged summer period last month appear to have eased to some extent the pressures on real incomes from the high price level. However, with the winter season coming to an end, strong activity is expected in markets directly or indirectly related to tourism.