Greek economy to grow by 5.6% in 2022, Fiscal Council report says

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The Greek economy is expected to grow by 5.6% in 2022 and by 1.8% in 2023, according to a revised estimate by the Finance ministry, the Fiscal Council said in a report on Monday.

The report said that the country’s GDP will reach 194.850 billion euros in 2023, up from an initial estimate of 194.506 billion.

These revised estimates are in line with similar moves forecasts made by the International Monetary Fund (5.2% in 2022 and 1.8% in 2023), while the European Commission expects a 6.0% GDP growth this year and an 1.0% rise in 2023.

The forecast for inflation rose to 5% from 3% initially, while private consumption and investments are projected to grow by 1% and 15.5%, respectively (from 1.3% and 16% initally).

The Fiscal Council said that a possible recession in EU member states could negatively affect Greek exports of goods and services although an efficient exploitation of Recovery Funds is expected to maintain investment dynamism, with gross fixed capital formation rising by 15.5% in 2023 from 10% in 2022. This forecast is highly related with expectations by enterprises and households and with a rising borrowing cost.

The general government’s balance is expected to show a primary deficit of -1.6%, in line with EU forecasts this year and to 0.7% in 2023.

Source: ANA – MPA

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