Alpha Bank weekly bulletin: Global energy crisis, high inflation critical factors for Greek economy in 2023

The global energy crisis and high inflation are the most critical factors that will affect the Greek economy in 2023, according to the last weekly economic bulletin by Alpha Bank for 2022.

The systemic ATHEX-listed bank’s analysts noted that the two negative factors are compounded by slowing trends in plaguing the global economy.

Additionally, the bulletin warns of a decline in the purchasing power of both Greek residents and European citizens, who make up roughly 80 percent of travel arrivals to the east Mediterranean country. The latter will, according to the forecasts, significantly dampen private consumption and service exports from Greece.

Conversely, the main economic growth driver is expected to be investments.

Along these lines, the absorption rate of resources emanating from the EU’s Recovery and Resilience Fund is deemed as highly important, along with the full execution of the state’s public investment program (PIP) and rate of FDIs, which in the first half of 2022 posted a record-high performance.