
Despite high inflation, the Greek economy has proven to be resilient, prompting BNP Paribas to expect growth of 2.8% in 2022, 2.5% in 2023 and 2.8% in 2024. Characteristically, in the end of the first quarter of 2022, GDP growth was 2.5% higher than pre-pandemic levels, a rate three times higher than the Eurozone average.
Greece is one of the European economies that has recovered the fastest from Covid restrictions imposed in 2020. Unlike other eurozone countries a recession seems unlikely this year, according to BNP Paribas. The unemployment rate has fallen to its lowest level in 12 years, although the workforce has shrunk since the outbreak of the global financial crisis in 2008/2009, especially among young people who emigrated en masse.
Read also: Price rally: Bleak forecasts for July – August
Eyes on Greece
The country is no longer at the center of fears about the Eurozone, in part because key economic indicators are now more favorable, and it is likely to benefit from a bumper summer tourist season. In addition, the political situation in Greece seems more stable than e.g. in Italy, where the coalition under Mario Draghi looks fragile, while the current Greek government enjoys a comfortable parliamentary majority and high popularity.
Debt may be high, but…
At the same time, although Greek public debt is higher than that of Italy, its financing needs are more limited compared to Italy, which is also reflected in the escalation of concerns about the possible fragmentation of Eurozone bonds. The main risk factors for the second half of 2022 are the consequences of monetary tightening in the Eurozone, but also rising inflation, given that a large part of consumer products in the country are imported. Although energy is the main driver behind the rise in inflation, BNP Paribas points out that prices are also rising in food, hotel and restaurant services and household goods.


Latest News

EU Condemns Trump Tariffs, Prepares to Retaliate
As tensions escalate, the EU is expected to continue negotiations with Washington while preparing for potential economic retaliation.

The Likely Impact of Trump Tariffs on Europe and Greece
Trump tariffs are expected to negatively affect economic growth in the Eurozone while Greece's exports could take a hit.

Motor Oil Results for 2024: Adjusted EBITDA of 995 mln€; Proposed Dividend of 1.4€ Per Share
Adjusted EBITDA for 2024 was down 33% yoy. The adjusted profit after tax for 2024 stood at 504 million euros, a 43% decrease from the previous year

Cost of Living: Why Greece’s 3% Inflation Is Raising Alarm
Greece appears to be in a more difficult position when it comes to price hikes, just as we enter the era of Trump’s tariffs.

Fitch Ratings Upgrades the Four Greek Systemic Banks
NBG’s upgrade reflects the bank’s ongoing improvements in its credit profile, Fitch notes in its report, including strong profitability, a reduction in non-performing exposures (NPEs), and lower credit losses

Trump to Announce Sweeping New Tariffs Wednesday, Global Retaliation Expected
With Trump's announcement just hours away, markets, businesses, and foreign governments are bracing for the fallout of one of the most aggressive shifts in U.S. trade policy in decades.

Inflation in Greece at 3.1% in March, Eurostat Reports
Average inflation in the eurozone settled at 2.2%, compared to 2.3% in February

Greece’s Unemployment Rate Drops to 8.6% in February
Despite the overall decline, unemployment remains higher among women and young people.

Jerry Kalogiratos Highlights Key Role of Energy Transition and Data Demand in LNG Outlook
Energy transition and the prospects of LNG were discussed at Capital Link’s 19th Annual International Maritime Forum, during a panel discussion with Jerry Kalogiratos (Capital Clean Energy Carriers Corp.)

Santorini Safe and Ready for a Dynamic Tourism Season
Authenticity, cultural heritage, and genuine experiences at the center of Santorini's new promotional campaign