Factors for sustaining growth
The implementation of the European Union-financed projects will be key in determining whether the Greek economy achieves its projected growth levels this and next year, central banker Yannis Stournaras stated on Wednesday.
The governor of the Bank of Greece spoke about the prospects and risks of the Greek economy, the banking system, and climate change in an interview with Global Finance magazine’s Tiziana Barghini.
As he said, “for 2023, the growth rate of the Greek economy is predicted to be 2.2%, due to the expected slowdown in economic activity in the eurozone and the milder increase in private consumption.” For 2024, a growth rate of 3% is predicted.
However, he pointed out that “this improved performance can be achieved provided that the implementation of investment projects financed by the Recovery and Resilience Fund (RRF) proceeds according to schedule, that the geopolitical crisis does not escalate and that the tightening of monetary policy does not leave permanent trauma on the eurozone economy.”
He added that “headline inflation is forecast at 3.8% in 2024, compared to 4.3% in 2023 and 9.3% in 2022, reflecting continued strong inflationary pressures from prices of food, non-energy industrial goods and services.”
