On the inflation front, price pressures will remain, with the index at 4.1% this year and 2.5% in 2023.
Fiscally, HSBC expects Greece to run a budget deficit of 1.4% this year, which will decrease to 0.7% in 2024, while on the debt front, the deleveraging will continue to 160.9% of GDP this year and 151.7% the following year.
The Greek economy will, along with Spain and Portugal, perform better this year at a difficult time, according to HSBC’s analysis of estimates for the last quarter of the year. As he points out, after the resilience shown earlier in the year, Europe’s leading indices have deteriorated.
While there was some stabilization in the Eurozone PMI in September, HSBC expects broad-based stagnation in the third and fourth quarters of this year. In particular, the manufacturing sector has been hurt for some time – and the “pain” of high interest rates is not abating. Global trade has been in a broad downward trend since the third quarter of 2022 and new export orders remain extremely weak.
To date, the “pain” for Europe’s corporate sector (as a whole) has been bearable. While gross corporate interest costs are rising, this is offset by higher corporate deposit yields, which have increased as a result of government support during the COVID-19 pandemic. The effect is so great in the UK that net business interest costs have actually fallen in recent quarters. However, the investment outlook is getting gloomier due to increasing overcapacity and higher capital costs.
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%