(Finance) – The central bank of Greece now predicts that the country’s economy will grow at a rate of 2.2% in 2023, well above the euro area average, but a significantly lower level than in 2022 (+5.9%). Consumption and, above all, investment will continue to make positive contributions to growth, while the favorable prospects for the tourism sector remain this year as well, despite the persistence of uncertainty.
The upward revision of the growth forecast for 2023 compared to previous estimates “is due to thecarryover effect from last yeargiven the outperformance of the economy in 2022,” reads the annual report of the institution led by Yiannis Stournaras.
L’inflation overall, while remaining relatively high, is expected to decline significantly to 4.4% in 2023 (from 9.3% in 2022), reflecting the projected decline in energy prices and the negative base effect.
In a context that is still volatile and with successive crises, “it is important to look for anchors able to strengthen the resilience of the economy and its ability to face future challenges”, reads the document.
In the case of Greece, “the continued implementation of credible economic policies – particularly on the fiscal front -, safeguarding the significant achievements of past reforms and establishing a new reform agenda for the government that will emerge from the next national electionsfocused on public sector modernization, institution building and infrastructure enhancement, should serve as a beacon guiding us through the troubled waters of the new economic reality.”
Greece will hold general elections on May 21stbut the vote is unlikely to produce a clear winner, setting the stage for sustained political maneuvering and a runoff.