The Greek economy is expected to grow by 1.2% this year and by an improved 2.2% in 2024 after a leap of 5.5% in 2022, the European Commission estimates.
“Greece’s economy recorded solid growth in the first half of 2022, but rising inflation took its toll on growth in the second half of the year,” the Commission said in its Winter 2023 Economic Forecast, published on Monday.
Inflation is also seen easing from 9.3% in 2022 to 4.5% this year and 2.4% in 2024, the report said, noting that “government measures cushioned the impact of energy prices on businesses’ input costs and households’ real disposable incomes.”
However, it said, “food price inflation is expected to prove more persistent, given the lagged pass-through of high energy costs on food production.”
The Recovery and Resilience Plan (RRP), meanwhile, “is projected to remain the main driver of investment growth, partly offsetting weakening corporate investment due to the tightening of financing conditions,” while “with the external environment slowly improving as of the second half of 2023, exports are set to pick up pace in 2024.”
Receipts from international tourism are also forecast to increase in 2023 and 2024, according to the Commission, though there are downside risks “related to the potential impact of geopolitical tensions.”