BoG Gov – Greece fared very well in 2021; outlook over next few years also looking good

The Bank of Greece (BoG) on Wednesday submitted to Parliament its Interim Report on Monetary Policy 2021.

BoG Governor Yannis Stournaras presented the report to Greek Parliament President Costas Tassoulas, adding that “there are more opportunities than risks for the Greek economy today, as long as we respond positively.”

Despite an uncertain economic climate, Stournaras said “Greece fared very well in 2021 and the outlook over the next few years is also looking good.” Growth in 2021 will turn out at around 8 pct, and it will reach approximately 5 pct in 2022 and 4 pct in 2023, he added, so Greece will have an average performance of 3 pct over the coming decade.

Nevertheless, he pointed out that “the likelihood of a new Omicron variant outbreak, along with existing hurdles in supply chains increase uncertainty, and give rise to risks for the course of inflation and the recovery of global economy.”

In its report, Greece’s central bank highlighted that “the recent deterioration of epidemiological data, combined with the low vaccination coverage of the population relative to the European average, increases uncertainty and the risks for economic growth. Nevertheless, the medium- to long-term prospects for the Greek economy remain very positive, supported by the launch of investment projects and the implementation of reforms associated with the National Recovery and Resilience Plan.”