Greece's economy is showing the first signs of a recovery, reducing the odds of the country exiting the euro zone, according to a new report from analysts at Berenberg Bank.
The term Grexit was coined by Citi analysts last year, and became popular in the run-up to the 2012 elections. While the man credited with the term believes a euro exit for Greece is still possible, Citi's chief economist, Willem Buiter, recently said it was no longer likely.
"The current level of economic sentiment in Greece is roughly consistent with stagnant GDP. That is already a huge change after three years of depression. More importantly, the recent improvement in sentiment suggests the Greek economy will start to enjoy quarter-on-quarter growth from the third quarter of 2013," Berenberg analysts said in Friday's report.
According to Berenberg, the coalition government in Athens has been doing a fairly good job, and more realistic demands from the troika of foreign lenders (the International Monetary Fund, the European Central Bank, and the European Commission) have boosted prospects for the economy.