Greek economy defies expectations

Despite the debt and political crisis in Greece the country’s economy is defying expectations

The government may be in crisis with new elections on the horizon after former Prime Minister Alexis Tsipras stood down, but there is at least some good news to report on the business front.

Second Quarter GDP growth has been revised up, yes up, to 0.9 percent from the initial reading of 0.8, surprising analysts.

There is a caveat. The figures reflect a time before capital controls came in. Their impact will only be seen in the third quarter reading.

Nevertheless it is good news. Consumer spending rose 1.1 percent in the second quarter and imports went down by 4.9 percent.

One of the most important sectors sustaining Greece is tourism. Visitors are still flocking to the country and its islands at the rate of over 20 million per year.

The country’s problems are far from over however with more possible political turmoil on the horizon.

Read more: Greek economy defies expectations | euronews, economy

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More than half of the companies in the benchmark Stoxx Europe 600 Index that have reported second-quarter sales so far topped analyst estimates. That’s up from about 40 percent in the prior quarter. While much of that was down to sales growth in North America and Asia, this time the fallout from Europe’s debt crisis didn’t overshadow those gains.

“France is holding up better than we would have thought six months ago,” said Xavier Huillard, chief executive officer of Vinci, Europe’s biggest construction company and operator of toll roads. “Traffic is often a leading indicator, and signs are that we have touched bottom and are recovering.”

The glimmer of optimism from CEOs adds to evidence from economic reports that the region emerges from a record-long recession, largely thanks to a recovery in Germany. European Central Bank President Mario Draghi yesterday said economic indicators signal the euro region is past the worst after euro-area manufacturing unexpectedly expanded in July for the first time in two years.

The region’s automakers, among companies hardest hit by the recession, say that while it may take many years to approach the peak level of sales in 2009, at least it won’t get any worse.

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