Greece's economy unexpectedly returned to growth in Q2 2015. The Hellenic Statistical Authority in Athens attributes a surprise surge to a strong start of the tourist season, a temporary boost in the services sector, and stable consumer spending. Seasonally adjusted gross domestic product expanded 0.8% in Q2. Interestingly, in the first estimate GDP was expected to post zero growth from April to June. Moreover, analysts polled by Reuters used to forecast a 0.6% contraction in Q2 on a quarterly basis amid deadlocked talks between Greece and foreign lenders. The amazing upswing in Greece’s economy is mainly driven by active consumer spending in the retail sector. Retail sales showed the positive dynamic in Q2. On the whole, the stronger services sector ensured some improvement on the labor market. In annual terms, the economy of the Balkan country rose 1.4%. Importantly, both Athens and international creditors project the economy to sink 2.3% in 2015 following six years of recession and minor growth of 0.8% in 2014. Greece’s finance ministry reported that fiscal revenues equaled €26.7 billion ($29.7 billion) from January to July this year falling short of the target set at €30.8 billion. In July, most of consumers, households, and companies delayed their purchases and payments until later with the aim of saving money when banks imposed restrictions on cash withdrawals. Economists are certain that the final settlement of the bailout deal will enable Greece’s economy to gain momentum.
