Businesses in the country should cut profit margins, which have widened significantly, Bank of Greece (BoG) Gov. Yannis Stournaras told CGTN and reporter Juliet Mann, in an interview broadcast over the weekend on the media site’s platform.
Stournaras, a former finance minister in the country – during a portion of the memorandum bailout era, no less – and a member of the European Central Bank’s governing council, noted that the rate of price increases in Greece is currently far greater than the rate of salary hikes, or even the rate of cost increases.
In his comments to the channel, one of six operated by the China Global Television Network, which itself is controlled by China state broadcaster China Central Television (CCTV), Stournaras dismissed arguments along the lines of creating a “safety surplus” of safety for the future, saying such a policy will simply reinforce stagflation.
This risk, as he warned, will generate inflation through a spiral of salary and price hikes, but accompanied by a drop in production and GDP growth.
As such, he said the goal should be for wage increases not to exceed the sum of the ongoing inflation rate – plus the rate of productivity growth. Secondly, he called on specific sectors to reduce profit margins.
Asked about Greek-Sino trade relations, Stournaras said Chinese exports to Greece account for roughly 8 percent of the east Mediterranean country’s total imports.
Conversely, Greece exports services to the vast Chinese economy, the vast majority being sea transport services.
Queried over the prospect of more direct Chinese investments in the country, he said they were welcome, as long as international rules were met.
Latest News
Vacant Properties in Greece Posing Risk of Forest Fires
Homeowners are calling on municipal authorities to clear away empty properties which pose a serious threat of fire in the summer
New ‘Jobmatch’ App to Link Greek Tourism Businesses with Jobseekers
New digital app ‘Jobmatch’ aims to help Greece’s tourism and hospitality sector fill hundreds of empty posts ahead of the tourism season
HSBC, Goldman Sachs Positive on Greek Economy
Goldman Sachs sees an upgrade of the Greek stock market
Greek Easter 1.5bln-Euro Turnover Satisfies Retailers
This year’s Orthodox Easter coincided with the beginning of the summer tourist season, resulting in a 15% increase in tourist traffic in downtown Athens
President von der Leyen’s Campaign Website Attacked by Bots
The President of the European Commission announced the attack, which comes one month before European Parliament elections and following a series of media reports about Russian-led disinformation campaigns, on her X account
MEPs Rake in ‘Whopping’ €8.7 mln in Side Gigs – Transparency Intl
The report opens a "can of worms" about the potential for foreign governments to influence MEPs and notes that Greece's MEPs rank the 3rd highest for their generation of side income
Greece Reacts Sternly to Turkish Decision to Open UNESCO Site Chora Church as a Muslim Mosque
"The decision of the Turkish authorities to start the operation of the Monastery of Chora as a Muslim Mosque constitutes a provocation to the international community", the Greek Foreign Ministry stated
DW: Greece Prepares for the 2024 Tourist Season Amid Climate Change Challenges
The Greek state has adopted measures to alleviate the impact of climate change
Greco-French Relations on Ice: Exploring the Chill between Mitsotakis and Macron
Macron allegedly sought increased military support for Ukraine, including weaponry and Western troop deployment for training in Western Ukraine, a request declined by Mitsotakis
Greece Secures Stable Tourism Flows at 30 Million Arrivals
However, despite this year’s bookings projected to rise slightly compared to last year, Yiannis Hatzis, President of the Panhellenic Federation of Hoteliers, stresses the importance of strategic planning