Just as the Finance Ministry in Athens announced on Wednesday a final budget execution to August that blew away primary surplus targets by a margin of 5.36 billion, which is the equivalent of 2.9 percent of Greece's expected GDP, reports suggested that Yannis Stournaras agreed with the troika that the full year primary surplus would be in the region of 400 to 500 million, which is no more than 0.27 percent of GDP.
Credit contraction in the Greek market marginally decelerated to 3.9 percent year on year (yoy) in August from 4.0 percent in July with balances reaching 221.79 billion euros, according to the Bank of Greece (BoG).
Greek private sector deposits marginally eased 0.11 percent month on month (mom) in August with balances reaching 162.21 billion euros. Net flow remained slightly negative for the third consecutive month with outflows at 212 million in August from 161 million in July.
The Trade deficit fell 3.4 percent year on year (yoy) to 1.54 billion euros in July, while the respective 7-month figure also retreated 17.4 percent yoy to 11.19 billion, according to the Hellenic Statistical Authority (ELSTAT).
The budget execution to August showed revenues outperforming monthly targets by 400 million euros for the second consecutive month in August with the year to date shortfall further narrowing to 1.05 billion from its peak of 1.61 billion at the end of June, according to the final data released by the Ministry of Finance (MoF) on Monday.
The July current account (C/A) balance showed a surplus of 2.73 billion euros from 510 million euros last year, according to the Bank of Greece (BoG). The significant increase mainly reflects a jump in the current transfers’ surplus to 1.86 billion, from just 100 million last year, owing to an inflow of 1.5 billion related to SMP income.
Greece’s industrialists have cited the departure of yet another major firm from the country as evidence that the government is failing to create conditions for growth, despite the coalition claiming that the business environment is improving.
Greek seasonally adjusted unemployment showed an increase of 0.3 percentage points (pp) month on month (mom) and 3.3pp year on year (yoy) to 27.9 percent in June, which is a new historic high, according to the Hellenic Statistical Authority (ELSTAT) monthly labour force survey.
The Turnover Index in Industry increased 3.6 percent year on year (yoy) in July, while New Orders Index in Industry also improved by a modest 0.8 percent yoy over the same period, according to the Hellenic Statistical Authority (ELSTAT). It is the first month since October 2012 that both indices have rebounded concurrently.
Budget execution to August showed revenues outperforming monthly targets by 490 million euros for the second consecutive month in August with the year to date shortfall further narrowing to 1.04 billion from its peak of 1.61 billion at the end of June, according to preliminary figures from the Ministry of Finance (MoF).