Greece’s industrial production has risen by 4.5% in the last year
Greece is primarily a service-based economy, with services contributing about 82.8% to the GDP (gross domestic product). However, industrial production remains an important gauge of economic activity. Greece’s IIP (index of industrial production) rose 4.5% in August 2015 from August 2014. It rose 4.1% in August 2015. The Global X FTSE Greece 20 ETF (GREK) was up 2.3% as of October 9. The ETF has fallen 40.7% over the past year.
The rise in industrial production was mainly led by a 4.2% rise in manufacturing activity in sectors such as beverage, tobacco, textiles, paper and paper products, basic pharmaceutical preparations and products, and electrical equipment industries. The 6.1% fall in production of mining quarries contributed to reductions. There was a 9.0% increase in electricity production and 0.1% in water supply.
Shipping companies such as FreeSeas (FREE), Diana Containerships (DCIX), and DryShips (DRYS) fell 57.7%, 14.1%, and 23.1%, respectively, over the past month as of October 9. Conversely, Capital Product Partners (CPLP) rose 0.59% over the same period.
Greece inflation fell to -1.7% in September 2015
From September 2014 to September 2015, Greece’s inflation fell to -1.7% YoY (year-over-year). A fall in housing rental prices and automotive fuel prices contributed to reduced inflationary pressure in Greece. With falling inflation and high debt level of 177.1% to GDP (gross domestic product) in 2014, the National Bank of Greece’s (NBG) American depositary receipt has taken a nosedive of 74.8% over the past year as of October 9.
Greece is engulfed with negative inflation, high public debt, and structural imbalances in the economy. The eurozone extended a much-needed third bailout worth about 86 billion euros to Greece. With this bailout package Greece’s recovery may be underway, with various economic reforms being undertaken by policy makers.
You may also be interested to read German Industrial Production Failed to Regain Strength in August. To remain updated on the economic front, please refer to our Global ETF Analysis page.