![European Commission – Growth of 8.5% in 2021 and 4.9% this year for Greece](https://www.ot.gr/wp-content/uploads/2022/02/graph-g7489c1f4e_1280.jpg)
Real GDP in Greece grew by 2.7% (quarter-on-quarter) in 2021-Q3, reflecting strong export performance and a significant contribution from private consumption. The notable recovery in tourist inflows over the summer
helped the economy to reclaim a significant part of the previous losses due to the negative impact of the COVID-19 pandemic, while the industrial sector has rebounded strongly. The recent emergence of the Omicron
variant and the related tightening of containment measures are expected to have weighed on growth in the last quarter of 2021, but its impact is projected to largely fade out during the first quarter of 2022. Overall, real GDP
is expected to have grown 8.5% in 2021.
Growth in 2022 is forecast to be driven by investment, supported by the impetus from the Recovery and Resilience Plan. As consumer spending returns to its pre-pandemic levels, private consumption is also expected to support growth. In addition, the external environment is forecast to remain supportive. Tourism in particular is expected to continue recovering its previous losses, until it fully returns to its pre-pandemic levels by the end of the forecast horizon. Overall, real GDP is projected to grow by 4.9% in 2022 and ease to 3.5% in 2023.
Driven primarily by energy prices, consumer price inflation increased in the last quarter of 2021. Electricity and fuel prices are set to peak during the first quarter of 2022 and ease later in the year. High energy costs are expected to subsequently pass-through to the remaining components of the consumption basket. Headline inflation is forecast at 3.1% in 2022 and 1.1% in 2023. Wage pressures have so far remained limited due to the still large slack in the labour market. The authorities announced an increase in the minimum wage in mid-2022, the size of which will be determined later in the year and therefore is not factored into this forecast.
![](http://www.ot.gr/wp-content/uploads/2022/02/γραφημα.jpg)
The risks to the forecast remain elevated. Notwithstanding the quick recovery so far, the evolution of the pandemic represents a source of uncertainty in particular for tourist arrivals. In addition, the projection assumes only a limited negative impact on production from the notable pick-up in input costs. On the upside, the accumulated stock of savings during the pandemic could facilitate a bolder increase in private consumption. The strong performance of goods exports since 2020, could be indicative of structural improvements in the external sector, which could be a source of additional upside risks.
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
Latest News
![Critical Week for Greece-Cyprus Cable](https://www.ot.gr/wp-content/uploads/2024/07/kalodio_elladas_cyprus_israil.jpeg)
Critical Week for Greece-Cyprus Cable
The study concluded that the social benefits of the interconnection, totaling 8 billion euros, far outweigh its 1.9 billion euros construction cost, resulting in a net social benefit exceeding 6 billion euros.
![Roberta Metsola Re-elected President of European Parliament](https://www.ot.gr/wp-content/uploads/2024/07/2024-07-16T110250Z_1107936467_RC2BW8AZP0U4_RTRMADP_5_EU-PARLIAMENT-2048x1366-1-600x400.jpg)
Roberta Metsola Re-elected President of European Parliament
Her second term will be for a period of two and a half years
![ELSTAT: 1.5% Increase in Business Turnover in May 2024](https://www.ot.gr/wp-content/uploads/2024/07/epixeiriseis_2-600x414.jpg)
ELSTAT: 1.5% Increase in Business Turnover in May 2024
The most significant increase in turnover in May 2024 compared with May 2023 was recorded from the enterprises of the Accommodation and Food Service Activities, sector which grew by 14.8%.
![Cosco: Container Traffic Decline at Piraeus Port Continues](https://www.ot.gr/wp-content/uploads/2024/07/olp1-scaled-1-2048x1312-1-600x384.jpg)
Cosco: Container Traffic Decline at Piraeus Port Continues
This strategic shift has diminished Piraeus's standing as a prominent Mediterranean port and a key transshipment hub post-Suez Canal.
![Gov’t Eyes Return of Power Subsidies Amid Spike in Rates](https://www.ot.gr/wp-content/uploads/2024/07/power-lines-2048x1365-1-600x400.jpg)
Gov’t Eyes Return of Power Subsidies Amid Spike in Rates
According to reports, the government will resume an electricity subsidization program, given that forecasts cite disruptions – i.e. higher rates
![ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock](https://www.ot.gr/wp-content/uploads/2024/07/ot_georg_PROIONTA_money-1-600x352.png)
ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock
The 6.3% rise in May 2024 is largely driven by an 8.8% increase in the crop output group, particularly due to changes in olive oil prices, and a 0.5% increase in the animal output group.
![Balkans Blackout Highlights Climate Threats to Power Grids](https://www.ot.gr/wp-content/uploads/2024/07/blackout-1-600x457.png)
Balkans Blackout Highlights Climate Threats to Power Grids
The surge in electricity demand during the heat wave and the power deficit in Balkan markets have driven up prices in the Greek wholesale electricity market.
![Greece in Top 4 Destinations Favored by European Tourists](https://www.ot.gr/wp-content/uploads/2021/06/ploio-600x400.jpg)
Greece in Top 4 Destinations Favored by European Tourists
Greece was selected by 5.9% of respondents who were asked where they would vacation this year, up from 5.4% in the same survey last year
![Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive](https://www.ot.gr/wp-content/uploads/2024/06/euros-2048x1365-1-600x400.jpg)
Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive
The international ratings firm raised Greece to investment grade in early August 2023
![First Seaplane Test Flights to Skopelos, Alonissos, Skyros](https://www.ot.gr/wp-content/uploads/2024/06/hellenic-seaplanes-pilotikes-ptiseis-ydatino-pedio-lavriou-600x450.jpeg)
First Seaplane Test Flights to Skopelos, Alonissos, Skyros
After decades of on-again, off-again efforts to schedule regular seaplane routes to Greece's numerous island and coastal destinations the prospect now appears within sight