EBRD: Greek economy set to grow by 5.2% in 2022 and 2.2% in 2023

The European Bank for Reconstruction and Development (EBRD) predicts a growth rate of the Greek economy of 5.2% this year and 2.2% in 2023.

In a report on the prospects of its member countries, published today, the EBRD speaks of strong growth for the Greek economy in the first half of 2022, following the great recovery in 2021 after the coronavirus pandemic.

GDP grew on an annual basis by 8% in the first quarter of this year and by 7.7% in the second quarter.

The high growth rates are partly explained by the comparison to the low first half of 2021, but also due to strong private consumption and increased government spending.

The strong performance of exports continued, as did high-tech exports, which as a percentage of GDP are now approaching those of Germany.

The tourism sector also again contributed strongly to this year’s growth, as its performance is expected to be similar to that of record-setting 2019.

Deceleration

However, the EBRD noted that short-term confidence indicators have started to move in a negative direction. The PMI fell to 48.8 in August on weaker demand and lower orders – as global energy markets face heightened uncertainty and turmoil and the Eurozone risks recession.

Predictions for 2023

“As a slowdown in growth in the latter part of the year appears inevitable, GDP growth is forecast to reach 5.2% in 2022 as a whole and 2.2% in 2023, with growth continuing, in part due to the implementation of programs financed by grants and loans from the EU Recovery and Resilience Fund,” the EBRD report says.