The OECD in its report on the prospects of the world economy that was published today predicts growth for the Greek economy of 6.7% this year and 1.6% in 2023 and 2024 is predicted by .
The forecasts for Greece are made in a context of a general slowdown in the growth of the global economy to 2.2% in 2023 from 3.1% this year and of the Eurozone economy to 0.5% from 3.3%, respectively.
Unemployment in Greece is predicted to fall to 11.8% next year from 12.6% this year and 14.7% in 2021, while for 2024 it is predicted to fall further to 11.3%.
For inflation the OECD predicts it will decrease in 2023 to 4.3% and further to 2.3% in 2023 from 9.7% this year, estimating that energy prices will decrease.
If energy prices remain high beyond mid-2023 or are higher than projected, this will weaken consumption and production and put a lot of pressure on public finances, the report said.
The OECD notes that Greece has labor shortages, among the largest among EU countries, particularly in sectors that are recovering strongly. “Inflation is gaining a broader base as increased labor shortages contribute to wage pressures,” it says.
It considers it appropriate to shift the wage adjustment mechanism from the administrative determination of the minimum wage to sectoral collective bargaining that reflects the conditions in the various sectors and labor productivity, in order to support real incomes and at the same time mitigate inflationary pressures.
As for public finances, the OECD projects a reduction in the overall general government deficit to 2.5% of GDP in 2023 and 1.5% in 2024 from 4.3% this year.
The fiscal measures for 2023 will continue to support the economy, with their cost amounting to 1.6% of GDP compared to 1.9% this year.
The report points out that a slower fiscal adjustment risks delaying the upgrade of Greece’s credit rating to investment grade.
It recommends an end to horizontal support measures for measures to limit energy costs and a shift to income support for vulnerable households as well as greater support for improving the energy efficiency of buildings.
For public debt, it is predicted that its de-escalation will continue, falling to 170.7% of GDP in 2023 from 175.4% estimated this year.
Instead of subsidizing mortgage interest rates, the OECD suggests allocating the relevant resources to expand programs that support access to higher-quality housing, with renovations to improve their energy efficiency.
στο Google News και μάθετε πρώτοι όλες τις ειδήσειςLatest News
DBRS Says Greek Banks ‘Shielded’ from ECB Rate Cuts
The agency explains that fund disbursements through the banking sector will help offset pressures anticipated on interest margins beginning in 2025, due to expected rate cuts by the European Central Bank (ECB).
Meta Cuts Facebook and Instagram Subscription Fees by 40%
The social media giant also revealed that it will continue to offer free access to Facebook and Instagram for EU users, provided they agree to see ads based on a limited set of user data.
Skyrocketing Use of Debit, Credit Cards
The total value of the transactions conducted with debit and credit cards in the country in the first half of 2024 rose 2% on the corresponding period of 2023
JP Morgan Revised Greece Outlook to ‘Overweight’
The investment bank notes that Greece is showing the strongest GDP growth in the Eurozone. Additionally, efforts to clear up bank balance sheets are anticipated to yield increased capital returns.
Vardis I. Vardinogiannis, Greek Tycoon and Shipping Magnate, Dies at 91
In 1990, Vardinogiannis was targeted in an attack which involved three rockets fired at his vehicle by the terrorist organization 17 November.
Kudos for Greek Sheep’s Milk Cheeses
Graviera is the Greek version of the Swiss gruyère, and is generally considered the second most popular cheese made in the country after feta
EIB Survey: Greeks Rank Climate Change as Top Concern After Cost of Living
Specifically, 98% of the Greeks surveyed stated that the country must to adapt to climate change, with 60% saying that priority should be given to these adjustment measures
Trump Tells Putin not to Escalate Ukraine War during Phone Convo
Meanwhile, President Joe Biden, is preparing to lobby Trump against abandoning U.S. support for Kyiv
Former Thessaloniki Mayor Yiannis Boutaris Dies at 82
Boutaris entered politics in 2010, serving as the 60th mayor of Thessaloniki for two consecutive terms until 2019, becoming a transformative figure with his progressive policies.
Greece Plans to Link Golden Visa to Startup Investments
The Greek government wants to decouple the Golden Visa Program from Real Estate investments
