ECONOMY

Greek economy to grow by 4.5% next year, says fiscal council

greek-economy-to-grow-by-4-5-next-year-says-fiscal-council

Greece’s economy is projected to grow by 4.5% next year after a stronger-than-expected rebound this year on higher tourism revenues and a boost from state support measures, the country’s fiscal council said on Friday.

The government expects the economy to grow about 7% this year, better than the 6.1% it had projected in October’s draft budget, Finance Minister Christos Staikouras said on Thursday.

The fiscal council, an independent body that evaluates macroeconomic projections, said it adopts the government’s projections but also said there were risks for 2022.

“Fiscal risks may arise from any resurgence of the pandemic that will require new measures to support the economy,” it said. “Prolonged inflationary pressures — especially in energy — might require compensatory measures.”

Greece, which emerged from a decade-long financial crisis in 2018, saw its economy slump by about 9% last year amid pandemic restrictions and a collapse in tourism revenues.

The government is expected to submit the final version of its 2022 budget to parliament later on Friday and this will be voted on before the year’s end. [Reuters]