Despite the ongoing Greek debt drama, the Greece’s stock market and country-specific exchange traded fund are moving as the economy slowly rebounds.
Since the April low, the Global X FTSE Greece 20 ETF (NYSEArca: GREK) has surged 29.4%. GREK has jumped 19.1% over the past month, but the ETF has recently leveled off, gaining 2.7% over the past week.
While the country is still struggling with a slowdown, record unemployment and shaky finances, Greece’s economy is showing signs of growth, with the gross domestic product expected to expand 0.5% this year, reports Jenny Cosgrave for CNBC.
As a result of the weaker euro currency, a booming tourism industry and stronger exports have helped keep the country afloat.
For instance, Grecotel, the flagship brand of the N. Daskalantonakis Group and largest employer of the Greek hospitality sector, has experienced consistent growth and is in the process of major renovations. Managing Director Mari Daskalantonakis also mentioned that the company has plans for new resorts as well.
“We support our country, we try to invest as much as we can in whatever way we can, we try to keep the employment and prolong the season and I must say, the European business world is very supportive,” Daskalantonakis told CNBC. “A lot of flights have been added towards Greek destinations and we are very thankful for that too.”
The debt concerns weigh on the Greek markets. Some are growing concerned that the Greek government may not pay the full 1.5 billion euros, or $1.71 billion, owed in June, MarketWatch reports.