The European Commission revised downwards its growth forecasts for Greece in 2022, estimating that the GDP will grow by 4.9% this year, compared to an estimate of 5.2% in the autumn forecast of last November.
According to its winter forecasts, the estimate for GDP growth in 2023 is also marginally lower (3.5% versus 3.6%).
The estimate for growth in 2021 has been significantly revised upwards with the Commission expecting Greek GDP to increase by 8.5% last year, compared to a forecast of 7.1% in November.
Inflation in Greece will average 3.1% this year and will drop significantly to 1.1% in 2023. The Commission report notes the rise in inflation due to rising energy prices in the fourth quarter of 2021, adding that “electricity and fuel prices are expected to peak in the first quarter of 2022 and decline later in the year.”
It is also noted that the pressure of price increases on wage costs is “currently limited” due to the situation in the labor market.