Greek Economy Rides Out Middle East Tensions with Strong Retail Sales and Lending

The Greek economy has shown resilience in recent months despite ongoing tensions in the Middle East. According to a report from Eurobank, stronger retail sales, easing inflation, and solid business lending have contributed to growth. In May, retail sales rebounded by 3.4 percent month-on-month, reversing declines seen in April and March.

The report also highlighted improving labour market conditions, with annual employment growth accelerating to 1.2 percent in June. Business lending remained robust, with credit to non-financial companies increasing by 9.8 percent year-on-year in June.

Eurobank attributed the slowdown in inflation mainly to lower food prices and easing services inflation. However, the bank cautioned that the drop does not necessarily signal a lasting easing of underlying inflationary pressures.