Greek Economy Expected to Grow 2.5-3.0% in 2022 – IOBE Think Tank

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ATHENS, April 19 (Reuters)Greece’s economy is expected to grow 2.5-3.0% this year if the war in Ukraine does not end before the summer, influential think tank IOBE said on Tuesday, lowering its previous growth forecast by 4, 5% to 5.0% made in January.

“We have a war in Europe that affects everyone,” IOBE chief Nikos Vettas said at a press briefing.

In an alternative, more optimistic scenario, in which the war in Ukraine ends in the spring and energy costs fall, reducing inflation, the economy could grow between 3.5 and 4.0 percent, it said. -he adds.

Vettas said IOBE forecast a generally positive economic outlook but a slowdown from previous months.

Before the war, IOBE expected Greece to have a window of opportunity in the next 3-4 years to make reforms and see its economy grow by 4-5%, IOBE said, but the conflict in Ukraine will hamper this effort.

Tourism, the main driver of the Greek economy, will help boost growth although a question mark hangs over how much profit companies will actually make due to inflation and rising energy costs , did he declare.

“If the crisis in Ukraine continues and the sanctions (…) are extended for several months, then Europe will be driven into a recession and our economy will not escape it,” he said, questioned. on the IOBE projections for 2023.

(Reporting by Lefteris Papadimas and Renee Maltezou, editing by Mark Heinrich)

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