Bank of America Merrill Lynch says that Greece has emerged from recession in the second quarter of the year and predicts positive growth rates on an annual basis in the third quarter.

However, it notes that developments on the inflation front remain alarming, with the harmonized inflation down by 0.8% in July and the GDP deflator contracted by over 2% in the second quarter. These developments are a possible threat to tax revenue, BofA underlines.

The Bank of America Merrill Lynch states that the Greek economy faces increased risks and believes that the positive surprises cannot continue.

The weakness of the Russian economy and the retaliation of Moscow against the West have damaged the Greek tourism (as Russian tourists account for a significant part of the increase in tourist revenues in Greece) and agriculture.