Stocks dip.

Kathimerini English - - Front Page -

Alexis Tsipras – af­ter law­mak­ers ap­prove his new bailout and he se­cured funds from in­ter­na­tional cred­i­tors – is re­viv­ing an econ­omy that’s tak­ing hit af­ter hit. Sec­ond-quar­ter GDP data due to­day doesn’t bode well. It’s ex­pected to show a 0.5 per­cent con­trac­tion in the three months through June, ex­tend­ing the coun­try’s re­ces­sion. Even be­fore the in­tro­duc­tion of cap­i­tal con­trols at the end of June, the out­look was grim. With the shut­down of the bank­ing sys­tem for three weeks de­mand dropped, man­u­fac­tur­ers couldn’t buy raw ma­te­ri­als and busi­nesses suf­fered. Markit’s man­u­fac­tur­ing Pur­chas­ing Man­agers In­dex for July cap­tures the blow to the econ­omy. That’s deep­en­ing the hole Tsipras has to drag Greece out of. The fis­cal con­di­tions at­tached to the bailout will add to the strain. Ac­cord­ing to Com­merzbank, the key ques­tion is “if and how well the Greek econ­omy gets go­ing again.” Note the “if.” Greece’s new aid pro­gram is based on fore­casts that it will con­tract 2.3 per­cent this year and 1.3 per­cent in 2016. GDP is seen ex­pand­ing 2.7 per­cent in 2017 and 3.1 per­cent in 2018. “We are far from sure about the growth as­sump­tions made for 2016 and 2017,” Com­merzbank econ­o­mists in­clud­ing Ralph Solveen said yesterday. “So the Greek cri­sis will have been staved off for the time be­ing. How long the sit­u­a­tion lasts will de­pend largely on how the Greek econ­omy per­forms.”

The Athens Stock Ex­change (ATHEX) fell yesterday af­ter four con­sec­u­tive trad­ing ses­sions that pro­duced gains. The gen­eral in­dex closed at 691.4 points, which was a de­crease of 1.93 per­cent on Tues­day’s fig­ure. Banks con­tinue to hog in­vestors’ in­ter­est, with trans­ac­tions cen­ter­ing on Eurobank, Al­pha, Pi­raeus and Bank of Cyprus.

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