BoG Gov. Stournaras Optimistic Greek Econ Growth Will Outpace Eurozone

The Governor of the Bank of Greece (BoG), Yannis Stournaras, expressed optimism regarding the rapid pace of growth of the Greek economy in comparison to the Eurozone.

In an interview with the Parapoitika site, Stournaras underscored the significance of leveraging available European funds, particularly those available through the Recovery and Resilience Facility (RRF), and in strategic sectors of the economy to buttress the recovery.

As he said, the upgrading of Greece’s credit rating to an investment-grade category was a milestone that would positively impact the Greek economy, attracting foreign direct investments.

Stournaras pointed out a series of inherent weaknesses in the Greek economy that needed to be addressed, such as tax evasion, bureaucracy, challenges in property transfers, spatial planning, the completion of the National Cadastre, and the digital transformation of public administration.

On the timeline for the de-escalation of interest rates by the European Central Bank (ECB), Stournaras emphasized the need for inflation to follow a clear and relatively stable trajectory towards the medium-term target of 2%.

The influential head of Greece’s Central Bank called for a cautious approach, linking the trajectory of inflation to any decisions regarding responsible monetary policy and interest rates.

Overall, the the BoG governor’s outlook reflected a balance between optimism about Greece’s economic course and a pragmatic approach to addressing existing challenges.

He also maintained that an anticipated improvement in Greek-Turkish relations would most likely have a positive impact on the economy.