NBG chief analyst: ‘shock’ of energy crisis reversible

The “shock” experienced by the Greek economy at present – similar to many other global economies – from the energy crisis is reversible, according to National Bank of Greece chief economist Nikos Manginas, who participated at the inaugural two-day OT Forum on Tuesday.

The key, the analyst said, is for Greece to move decisively towards energy independence and to accelerate the country’s digital transformation.

“The current crisis can serve as an opportunity for permanent changes and reforms, which will improve macroeconomic prospects,” he said during the studio-formatted and live-streamed Q&A with two journalists.

Manginas pointed to the preceding – and still noticeable – Covid-19 pandemic, which forced the Greek state and business to digitize very quickly, leading to a skyrocketing number of e-transactions, for instance. The latter phenomenon slashed tax evasion and avoidance, among others.

One bright spot from 2021 is a significant increase in bank deposits held by households and businesses in Greece, capital that is “fuel” for funding healthy businesses and a new economic landscape.

On the negative side, he said the Russian invasion of Ukraine and war has dramatically dampened business and consumers’ confidence, saying soon-to-be-announced figures this week will show a tanking of economic confidence indexes.

He forecast that economic conditions will improve by the summer, with the domestic market needing to “endure” until them.