The Greek economy is expected to grow by 2.9% in 2022, even more in 2023

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Greece’s economy is expected to grow by 2.9% in 2022 despite inflation in the country hitting a 28-year high, reaching 10.2% in April.

This is the first double-digit figure since the 10.2% reached in April 1994.

The new explosion of inflation last April is due to the energy crisis and above all to the 88.8% rise in electricity prices (on an annual basis), which has the most significant impact on index, followed by natural gas with an annual increase of 122.6%. and fuel oil 65.1%.

The annual increases of 29% of fuels and lubricants, but also of several foods such as meat 14.1%, vegetables 13.8% and oil 22% are also noteworthy.

Consumers had to buy bread, the cost of which increased by 10%, while the price of fruit increased by 8.6%, dairy products and eggs by 11.7% and cheese by 7.1%. coffee. In terms of services, there was an annual increase of 17.7% in ferry tickets, 15.8% in air tickets and 16.1% in hotel prices.

Clothing and footwear rose 1.6%.

The prices of new cars increased by 8.9% and those of used cars by 11.5%. Overall, there was a 15.4% increase in the Transport sector, mainly due to the rise in the prices of new cars, second-hand cars, mopeds-motorcycles, tires, fuels and lubricants, transport of passengers by air.

The housing and food sub-index shows a significant increase of 35.2% and 10.9%.

Meanwhile, the Greek economy is expected to grow by 2.9% this year, with growth expected to reach 3.5% in 2023, helped by increased disbursements from the EU Recovery and Resilience Facility. European Union, the EBRD scheduled for Tuesday.

The European Bank for Reconstruction and Development said the war in Ukraine could impact the Greek economy not so much through direct links as indirectly through increased energy costs given its heavy reliance energy imports.

Other headwinds include supply chain disruptions, rising financing costs and possibly weaker-than-expected tourist arrivals if a recession takes hold in major Western European countries, said the EBRD.

The Greek economy rebounded strongly last year, with gross domestic product (GDP) rising 8.3% on the back of increased investment and consumption and a partial recovery in the tourism sector.

EBRD investments in Greece amounted to €838 million ($883.7 million) last year, making the country one of its top five recipients of funding.

Elsewhere, Greek-German economic ties have strengthened over the past two years despite the challenges and unrest caused by the pandemic in 2020, with economic relations increasing in 2021, gradually returning to normality, according to a report by the Foundation for economic and industrial research IOBE. Wednesday.

The report, produced for the Greek-German Chamber of Commerce and Industry, says that amid the pandemic crisis, Germany has preserved and in several cases strengthened its position as one of the largest trading partners. and investment from Greece.

The report states that the cumulative contribution of members of the Greek-German Chamber to the Greek economy is estimated at 3.9% of gross domestic product (6.4 billion euros), compared to 3.3% in 2019.

READ MORE: Greek real estate: 14 years of work now needed to buy a house (MAP)

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