BoG: Econ growth in Greece for 2023 forecast at 2.2%

The Bank of Greece (BoG) on Friday released a revised growth forecast for the ongoing year, specifically at 2.2 percent of GDP, while at the same time citing a handful of risks to the economy and also issuing recommendations to the re-elected conservative government.

The forecast was included in the central bank’s monetary policy report for 2022-23. The report was submitted by BoG Gov. Yannis Stournaras to the president of parliament and members of the Cabinet, as is customary.

In a statement, Stournaras again underlined the importance of Greece again attaining an investment grade rating in order to boost economic progress and social cohesion, as he said, “amid an international environment of uncertainty.”

Along these lines, he called on the Mitsotakis government to immediately proceed with more reforms in order to deal with structural problems in the country.

The BoG foresees growth of 3.0 percent in 2024 and 2.7 percent in 2025, while adding:

“This performance can be achieved, provided that in the international environment the geopolitical crisis has subsided; energy prices have decreased and a tightening of the Euro-system’s monetary policy has a limited negative impact on the euro-area’s economy. Additionally, forecasts are based on the assumption that the Greek economy will continue to be significantly strengthened by external tourism, appropriate implementation of investment projects and growth performance in the euro-area, which is the country’s major trading partner.”