The Greek SME sector is showing remarkable resilience despite the war in Ukraine affecting the already strained energy and raw materials international markets and supply chains.
According to a recent survey by the National Bank’s Directorate of Economic Analysis, while the blow to Greek companies is proving to be of great breadth and depth, SMEs maintain sound finances and are actively growing.
Survey
In particular, the NBG survey of a sample of 600 companies (April-May) highlights the growing uncertainty affecting the SME sector, with 41% reporting a direct impact of the war (with half saying this is intense).
Highlighting the pressure on prices and adequacy of raw materials as the main hurdles, Greek companies are burdened both due to dependence on Russian and Ukrainian imports but mainly due to the wider turmoil in the international energy and raw materials markets. At the industry level, the blow is most severe in industry and trade, with half of the respective SMEs declaring themselves directly exposed to the current situation (compared to 25-30% in services and constructions).
Under these conditions, the SME Confidence Index dropped by 11 points compared to the previous semester, with the concern focusing on liquidity.
Despite the above signs of deterioration of SME expectations, it is important that the situation at this stage seems manageable, because the Confidence Index remains on positive ground, and the percentage of SMEs with severe liquidity problems remains at a record low of 9.
On a growth trajectory
SMEs manage to stay on a growth trajectory in both the short and medium term planning horizon despite the problems.
According to the NBG there will be rising demand for hiring in the next semester, while for the next five years, sales dynamics are foreseen to grow by 2% per year (compared to the previous five years.
This optimistic view from respondents partly reflects the opportunities opened up through the Development Fund and other related investment programs.
στο Google News και μάθετε πρώτοι όλες τις ειδήσειςLatest News
Lavrio Port Authority Next Up for Privatization
A deadline for the submission of expressions of interest is May 14, 2024
Eurostat: Greece Records Largest Drop in Natural Gas Prices in 2nd Half of 2023
The price of electricity and natural gas in Europe was down following a substantial surge that began before the Russian invasion of Ukraine and peaked in 2022
GEK TERNA Still Considers Leveraging Concessions Portfolio as Financial Tool
President and CEO of Gek Terna George Peristeris explained the company's plans on Tuesday on the sidelines of the inauguration of sections of Greece's E65 highway
NielsenIQ: 3% Supermarket Revenue Increase in Q1
Private label products are gaining traction, comprising 25.4% of shopping basket shares, up from 24.7%
Store Hours Change Today in Observation of Orthodox Easter
The President of the Athens Chamber of Commerce hopes the Easter period will provide a much-needed boost to retail traffic in the capital
Athens-area Mass Transit Systems Set to Finally Install Contact-less Fare Payment
Paying fares via bank cards, smartphones and smartwatches in all mass transit systems in the Greek capital, namely, buses, trolleys, the metro and tram lines, is scheduled by the end of the year
Council of State Rejects Motion Against Thessaloniki Motorway Project
The motion was filed earlier this month by three local citizens’ and environmental groups and generated a high court decision for a temporary stay in construction
Greek 30Y Bond Issue Oversubscribed by 11 Times
Very high demand pushed down the coupon's interest rate to 4.125%
Athens Int’l Airport Wins Top Prize at Routes Europe Awards
The Routes business is focused entirely on aviation route development and the company's portfolio includes events, media and online businesses
IOBE: Income Gap Between Poor and Wealthy Greeks Widens
The findings in the analysis, entitled “Progressivity in Income Taxation in Greece, 2012-2021", paint a bleak picture for Greeks in the bottom half of the income bracket, warning that income inequality is growing
