The Greek Wire - September 2023

The Greek Wire is a monthly newsletter aiming to inform you about key economic and political developments in Greece.

Government strikes tax evasion
The government has launched a “war” on tax evasion with significant successes and a new bill in the works National Economy and Minister of Finance Kostis Hatzidakis includes a new framework for the taxation of the self-employed. The minister of finance has challenged himself to make his own mark in the fight against tax evasion, as he did in his previous posts. The relevant bill will be tabled in Parliament next year. It will be preceded, immediately after this month’s Thessaloniki International Fair, by the passing of regulations for the wider use of digital tools in the fight against tax evasion, but also for limiting the use of cash in transactions. He said in an interview with Kathimerini “The flagship of our effort will be the connection of card terminals (POS) with the cash registers and the tax authorities to make the corresponding checks. In the first months of 2024 the connection of 450,000 businesses will be completed”.

Labor force survey: Unemployment decreased by 1,7% in July 2023
The seasonally adjusted unemployment rate in July 2023 amounted to 10.8% compared to the downwards revised 12.5% in July 2022 and to the downwards revised 11.0% in June 2023. The number of employed persons amounted to 4,221,067 persons increased by 105,766 persons as compared with July 2022 (2.6%) and decreased by 3,057 persons compared with June 2023 (0.1%). The number of unemployed persons amounted to 512,721 decreased by 72,935 persons as compared with July 2022 (-12.5%) and by 9,938 persons compared with June 2023 (-1.9%). The number of persons outside the labour force, i.e., persons under the age of 75, that neither work nor look for a job, amounted to 3,065,436, decreased by 62,007 persons as compared with July 2022 (-2.0%) and increased by 10,348 persons compared with June 2023 (0.3%).

Source: Hellenic Statistical Authority (ELSTAT)

Interest Rates on Bank Deposits and Loans – July 2023
In July 2023, the weighted average interest rates on new deposits and on new loans increased to 0.35% and 6.21% respectively. The interest rate spread between new deposits and loans increased to 5.86%. In July 2023, the weighted average interest rates on outstanding amounts of deposits and loans increased to 0.41% and 6.24% respectively. The interest rate spread between outstanding amounts of deposits and loans increased to 5.83%.

Source: Bank of Greece

Bank credit and deposits – July 2023
The annual growth rate of total credit extended to the domestic economy stood at 0.6%in July 2023, compared with 2.7% in the previous month. The annual growth rate of total deposits stood at 2.8% in July 2023, compared with 3.4% in the previous month. Deposits placed by the private sector decreased by €191 million in July 2023, compared with an increase of €3,014 million in the previous month.

Price Index in Industry: July 2023, y-o-y decrease of 8.6%
The Overall Producer Price Index (PPI) in Industry (total of domestic and non-domestic market) with base year 2015=100.0 in July 2023 recorded a decrease of 8.6% compared with July 2022. The corresponding index in July 2022 had recorded an increase of 35.6% compared with July 2021. The Overall Producer Price Index in July 2023 recorded an increase of 1.4% compared with June 2023. The corresponding index in July 2022 had recorded a decrease of 2.0% compared with June 2022. The average Overall Index for the twelve-month period from August 2022 to July 2023 increased by 6.7% in comparison with the corresponding index for the period from August 2021 to July 2022, while the increase recorded between the previous twelve-month periods amounted to 32.8%.

Source: Hellenic Statistical Authority (ELSTAT)

RETAIL TRADE: June 2023, y-o-y decrease 1.0%
The Overall Turnover Index in Retail Trade in June 2023 decreased by 1%, compared with the corresponding index of June 2022, while the corresponding index of May 2023 increased by 5.7%. The Overall Volume Index in Retail Trade (i.e., turnover in retail trade at constant prices) in June 2023, decreased by 7.6%, compared with the corresponding index of June 2022, while, compared with the corresponding index of May 2023, increased by 2.8%. The seasonally adjusted Overall Turnover Index in June 2023, compared with the corresponding index of May 2023, decreased by 2.6% (Tabl). The seasonally adjusted Overall Volume Index in June 2023, compared with the corresponding index of May 2023, decreased by 3.8%.

Source: Hellenic Statistical Authority (ELSTAT)

Turnover and volume in wholesale trade
The Hellenic Statistical Authority announces the monthly Turnover and Volume Indices of the period April-June 2023, the evolution of which, is as follows: The Turnover Indices in Wholesale Trade of the period April-June 2023, compared with the corresponding indices of the period April-June 2022, recorded annual rates of change as follows: April, increase 0.2% May, decrease 0.7% and June, decrease 4.0%. While the Volume Indices in Wholesale Trade recorded annual rates of change as follows: April, increase 10.2% May, increase 15.0% and June, increase 15.4%.

Source: Hellenic Statistical Authority (ELSTAT)

Business demography in Greece
The number of registrations in all economic sections in the 2nd quarter 2023 amounted to 26,897, recording an increase of 6.1% in comparison with the 2nd quarter 2022, when the respective number was 25,341 and a decrease of 21.4% in comparison with the 1st quarter 2023, when the respective number was 34,213. Among the sections of economic activity with the largest contribution to the total turnover, according to the data of the Statistical Business Register for the reference year 2020, the biggest increase in the number of registrations in the 2nd quarter 2023 compared with the 2nd quarter 2022, was recorded in section “Transportation and Storage” (33.0%) and in section “Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles” (16.9%), while a decrease was recorded in section “Electricity, Gas, Steam and Air Conditioning Supply” (64.4%).

Number of Registrations by Large Geographical Area

Source: Hellenic Statistical Authority (ELSTAT)

Greek Merchant Fleet decreased by 0.8% in June
The Greek Merchant Fleet decreased by 0.8% in June 2023 compared with June 2022. A decrease of 0.2% was recorded in June 2022 compared with June 202. The gross tonnage of the Greek Merchant Fleet, for vessels of 100 GRT and over, recorded a decrease of 4.0% in June 2023 compared with June 2022. A decrease of 2.2% was recorded in June 2022 compared with June 2021.

Source: Hellenic Statistical Authority (ELSTAT)

Increase of 1.1% in agricultural land - Annual Agricultural Statistical Survey
According to the Annual Agricultural Statistical Survey for the years 2020 and 2021, announced the Hellenic Statistical Authority (ELSTAT), the total agricultural land (arable land, horticulture land, permanent crops, and fallow land) amounts to 28,112.0 thousand stremmas in 2020 and 28,420.0 in 2021, recording an increase of 1.1%. Cultivated areas by main crop type and by year are distributed as follows: In 2020, 57.4% of the agricultural land (16,143.0 thousand stremmas) is covered by arable crops (net area), 1.6% (442.8 thousand stremmas) by vegetable crops (net area), 35.8% (10,075.4 thousand stremmas) by permanent crops, whereas 5.2% (1,450.9 thousand stremmas) is fallow land. In 2021, 56.9% of the agricultural land (16,178.9 thousand stremmas) is covered by arable crops (net area), 1.7% (493.5 thousand stremmas) by vegetable crops (net area), 36.2% (10,295.7 thousand stremmas) by permanent crops, whereas 5.1% (1,451.9 thousand stremmas) is fallow land.

Source: Hellenic Statistical Authority (ELSTAT)