Has Greece turned the corner?

In the spring of 2012, Greece almost crashed out of the eurozone. Today, the coalition government is stable and the economy is showing signs of improvement.

In the spring of 2012, Greece almost crashed out of the eurozone. Today, the coalition government is stable and the economy is showing signs of improvement. Credit rating agency Fitch has upgraded Greece's sovereign debt to a higher class of junk. Ten-year bond yields have fallen to under 9%, down from 30% a year ago.

Athens is hitting its fiscal targets and looks on track for a primary surplus in 2013 (a surplus before interest payments). So it is unlikely to have to implement more austerity next year, says Hugo Dixon on Reuters.com. The drive to improve competitiveness, "mainly through much lower wage costs, is finally bearing fruit too". Take tourism, which accounts for 17% of GDP. Revenues are set to rise by 9% this year.

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