Danske Bank: Greece seems to be moving towards positive yearly growth in GDP
-Greece domestic demand has started to improve and in Q1 private consumption increased in year-on-year terms for the first time in four years. As in Spain, consumers'unemployment expectations have dropped, although the unemployment rate is very high.
-The improvement in consumers' expectations suggests that private consumption will continue to increase as we expect the unemployment rate will decline further.
-Greece has also made structural reforms and has reduced nominal unit labour costs to below the euro area average, implying competitiveness has been strengthened which should create scope for foreign demand to support economic activity going forward.
-Overall, Greece seems to be moving towards positive yearly growth in GDP as manufacturing PMI has settled around 50.
