Confidence in economy grows

Two widely used indicators about managers' and consumers' expectations have reached heights not seen in many months, although a local think tank that compiles them warns that such sentiments could prove ephemeral.

The so-called economic climate index compiled from surveys by the Foundation for Economic and Industrial Research (IOBE) is at a 16-month high, while the consumer confidence index is at a 24-month high, although Greek consumers remain among the European Union's gloomiest. The improvement in the two indices is closely related to a sense of political stability confirmed in the last two elections fought close to one another last May and June. Also, despite the problems publicized in the media, the rush of tourists has positively impacted incomes. IOBE notes, however, that "significant challenges remain on many economic fronts."

"At the same time, one cannot...