Eurobank cites resilient Greek economy amid Middle East uncertainty

Athens, Greece. The Greek economy showed resilience in recent months despite the ongoing crisis in the Middle East, supported by stronger retail sales, easing inflation and robust business lending, according to Eurobank.

The bank said geopolitical uncertainty remained high because of the potential effects on energy prices and global demand for goods and services.

Economic indicators

Eurobank said retail sales rebounded in May, employment growth accelerated in June, lending to non-financial businesses remained strong and inflation slowed further in July.

Economic sentiment and manufacturing activity also continued to indicate expanding economic activity, the report said.

Stronger-than-expected growth across the European Union and euro area in the second quarter of 2026 should support demand for Greek exports, according to Eurobank.

Retail sales

Retail sales volumes rose by 3.4 per cent month-on-month in May, reversing declines of 1.5 per cent in April and 0.4 per cent in March.

Annual retail sales growth reached 6.5 per cent, aided by a weak comparison base in May 2025.

Growth was broad-based, with higher sales in supermarkets, department stores, fuel, food and beverages, pharmaceuticals and cosmetics, clothing and footwear, household goods, furniture, electrical appliances, books and stationery.

Employment and lending

Annual employment growth accelerated to 1.2 per cent in June, from revised rates of 0.9 per cent in May and 0.5 per cent in April.

Employment rose by 0.9 per cent year-on-year in the second quarter, compared with 1.2 per cent in the first quarter and above initial estimates of 0.4 per cent growth.

Eurobank said the figures indicated that employment likely contributed more to second-quarter economic growth than previously expected.

Credit to non-financial companies increased by 9.8 per cent year-on-year in June and averaged 9.7 per cent during the second quarter.