The European Commission released its winter forecast, according to which Greece’s real GDP rose by 2.2% in 2023, instead of the initial estimate of 2.3%.
The report notes that consumption growth remained notably reduced despite a robust recovery in 2022, adding however, that it remained one of the main drivers of growth last year.
As market experts say, despite stricter funding conditions, investments contributed significantly, thanks to strong construction activity and the implementation of the Recovery and Resilience Plan (Recovery Fund). “The slower-than-expected recovery of Greece’s main trading partners in the EU affected export growth, but net exports made a positive contribution to growth,” they stress.
The EC expects growth to remain generally stable at 2.3% in 2024 and 2025, while real consumption is expected to expand at the same level in 2023, resulting in a slightly lower contribution to real GDP growth.
Investments are forecast to significantly spike as the implementation of the Fund accelerates and funding conditions ease. The composition of gross fixed capital formation is expected to shift from construction to more productive investments such as equipment and machinery.
Inflation forecast
As far as annual inflation based on the Harmonized Index of Consumer Prices (HICP) is concerned, the forecast says it assuaged to 4.2% in 2023. Core inflation, excluding energy and food prices, was significantly higher, averaging 5.3% in 2023, but fell below the level of HICP inflation by December 2023.
Overall, inflation is expected to gradually decline in 2024 and 2025, to 2.7% and 2% respectively. This is marginally lower than in the autumn forecasts and the two years.
The contraction of the labor market, together with the recently announced increase in the minimum wage (from April 2024), is estimated to exert some upward pressure on prices, which will partly offset the impact of lower energy prices on inflation.
Source: tovima.com
Latest News
New Athens Metro Line Hopes to Alleviate Heavy City Traffic
The massive project is expected to be completed in 2029
National Intelligence Agency DG to Accompany Greek PM to Ankara
Prime Minister Mitsotakis also gave an interview to Turkish newspaper Milliyet regarding his upcoming visit
Draft Bill Eyes Detection of Uninsured, Poorly-Maintained Vehicles in Greece
According to reports, at least half a million vehicles in Greece are uninsured, while the number of those without inspections is unknown
AIA: Passenger Traffic Up by 16.3% in April
Passenger traffic at the Athens International Airport (AIA) amounted to 2.49 million during April 2024
Fitch Solutions: Greece Set to Welcome 40 Million Tourists Annually by 2028
However, Fitch Solutions highlights concerns about overtourism, cautioning that it could strain Greece's capacity to deliver quality services, potentially leading to neglect of popular destinations
ELSTAT: Q1 Exports Down 11% – Trade Deficit Up 8.7%
Amid international uncertainty and armed conflicts in Gaza and Ukraine in 2023, Greek exports continued to decline, ending the year with an 8.5% drop
The Worst European Cities for Pickpocketing – Where is Athens?
The data was presented by London-based travel insurance company Quotezone
Greek Buyers Drive Vacation Home Market Resurgence
George Gavriilidis, CEO of the real estate consultancy Elxis highlights that Greek buyers are increasingly drawn to emerging locales.
INSETE: Air Data Tracker Sees Bookings up 8.4%
Of the 27,025,200 seats booked from March to October 2024, 80% have been confirmed
Titan Group Announces IPO For Its North American Subsidiary
Titan Group subsidiary Titan American will be listed in a New York stock exchange, with the details pending