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Industrial Production Growth Slows in June
Key Highlights:
- Industrial production in Greece increased by 9.5% year-on-year in June, down from 13.3% in May.
- The increase was driven by strong production in the manufacturing sector (14.5%), while the mining and quarrying sector saw a decrease of 3.3%.
- The construction sector also recorded a decline, with output dropping by 3.6% from the previous month.
Underlying Factors:
- The slowdown in industrial production was primarily due to weaker demand from the construction sector, which was affected by lower public investment and weak private consumption.
- Supply chain disruptions and high inflation also played a role in the decline.
Market Impact:
- The slowdown in industrial production raises concerns about the sustainability of economic growth in Greece.
- It may also lead to job losses in the manufacturing and related sectors.
Government Response:
- The Greek government has announced measures to support businesses affected by the slowdown, such as providing financial aid and tax incentives.
Conclusion:
The slowdown in industrial production in June is a worrying sign for the Greek economy. The government needs to take measures to address the underlying issues and support businesses to mitigate the impact of the decline.