Jul 1, 2019

GDP increased by 4.7% in May 2019

Quick Update

  • According to the initial estimates of GeoStat, real GDP growth stood at 4.7% YoY in May 2019. The growth averaged 4.9% YoY in the first five months of 2019.
  • In terms of sectors, trade, renting and business activities, real estate and hotels and restaurants were predominantly driving the higher economic activity.
  • The decline in the construction sector persisted also in May, mostly explained by the finalization of the BP’s SCPX project, as well as likely impact of the stricter housing construction permits and retail lending regulations. A decrease was also registered in manufacturing sector, probably driven by the volatile exports of ferro-alloys and drop in production of fertilizers and spirits. 
  • Overall exports, especially with higher share of domestic value added, were weak partially explained by the base effect. However, tourism and remittance inflows were supportive, increasing at higher rates as compared with the tendency over the previous months (see the notes on trade, remittances and tourism).
  • Together with the stronger remittances, the continued expansionary fiscal stance (see the note on fiscal) had a positive impact on the domestic demand. Also, after months of consecutive slowing down, the credit growth has somewhat stabilized (see the note on credit). Still, imports growth remained weak probably even when adjusted for the high base effect. The NBG did not intervene on the FX market in May.
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