The Greek economy posted a solid growth rate in the first half of 2022 and it is predicted to post the same performance for H2, while remaining in a growth orbit for 2023 and 2024, the European Commission announced on Monday with the publication of its winter economic forecast.
Based on the Commission’s forecasts, Greek GDP will surpass surpassing the EU and Eurozone average growth rates.
Specifically, the Greek economy growth is pegged at 5.5 percent in 2022; 1.2 percent in 2023 and forecast to rise to 2.2 percent in 2024, exceeding the growth forecasts of 3.5 percent, 0.9 percent and 1.5 percent, respectively, for the Eurozone – and 3.5 percent, 0.8 percent and 1.6 percent averages for the EU.
The Commission’s forecasts were revised slightly downwards for 2022, compared with its previous forecasts last November 2022 (6 percent) and slightly up for 2023 and 2024, at 1 percent and 2 percent, respectively.
Although growth was solid for 2022, a rising inflation rate took its toll on growth in the second half of the year, the EU executive clarified.
At the same time, Recovery and Resilience Facility (RRF) provided notable support to the Greek economy and government subsidies and one-off support measures cushioned the impact of surging energy prices on businesses’ input costs and households’ real disposable incomes. Overall, real GDP growth is forecast to have reached 5.5 percent in 2022.
Falling inflation is expected to gradually ease the burden on households’ real income and benefit private consumption. The timely and effective implementation of the Recovery and Resilience Plan (RRP) is projected to remain the main driver of investment growth, partly offsetting weakening corporate investment due to the tightening of financing conditions. With the external environment slowly improving as of the second half of 2023, exports are set to pick up the pace in 2024. Receipts from international tourism are forecast to increase in 2023 and 2024. Overall, real GDP is forecast to grow by 1.2 percent in 2023 and to pick up to 2.2 percent in 2024.
Latest News
Developing the Blue Carbon Economy in Greece
Can Greece make money by protecting its marine environment?
EIB Appoints Greece’s Ioannis Tsakiris as New VP
Ioannis Tsakiris started the new role May 1 after spending 15 years at the European Investment Fund (EIF) and serving as Greece’s Deputy Minister for Development and Investments
Two Greek Beaches in Top 50 in the World
Both Greek beaches were on the list of the best beaches in Europe too
Eurostat: Greece 20th out of 26 European States in Hourly Average Wage
According to figures released by Eurostat, the Benelux Grand Duchy of Luxembourg, one of Europe’s hubs for finance, is in first place
Greek Property Renovation Surge amid Economic Constraints
This has led to a notable escalation in renovation costs, with average prices per square meter exceeding previous norms and reaching even 1,000 euros in premium locations
RRF: Additional €5.1bln Funds for Subsidies to Greece in 2025
By April 22, funds totaling 5.75 billion euros had been transferred for approved projects of the Recovery Fund to entities within and outside the general government and final recipients
OECD: Greek Economy Resilient with 2% Growth Forecast for 2024
However, the OECD highlights challenges including the need to enhance productivity and fiscal adjustment due to high debt levels.
Challenges and Delays in Greece’s Hydrocarbon Exploration
Sources disclose that the petroleum companies holding the concessions are seeking partners to jointly invest and share the costs of exploration and drilling.
Greek Beach Visitors Can Report Violations on New ‘MyCoast’ App
Greek authorities hope the newly-launched, free ‘MyCoast’ app will help clamp down on public beach violations
BoG Figures Confirm Banner Year for Greek Tourism in 2023
20.6 billion euros in related revenues topped the previous year’s figure by 16.5%