Greek economy to grow 2.2% in 2023, prudence pivotal – cenbank chief

Article content material

ATHENS — Greece’s economic system will develop by 2.2% in 2023, its central financial institution chief stated on Friday, urging the nation to stay to the trail of reform and financial prudence because it enters a interval of elevated political uncertainty attributable to elections.

Greece will maintain a common election on Could 21, weeks earlier than the conservative authorities’s time period ends. However the vote is unlikely to provide a transparent winner, setting the stage for protracted political maneuvering and a runoff vote.

Article content material

Athens must proceed with credible insurance policies to defend its economic system from dangers which embrace the influence of the vitality disaster and a protracted electoral interval, Yiannis Stournaras advised the central financial institution’s annual shareholders’ assembly.

Article content material

“The largest danger for Greece’s financial prospects in a interval of successive crises and elevated uncertainty, can be a lack of credibility on the financial coverage applied, which was so laborious to regain, and a return to the dangerous practices of the previous,” Stournaras stated.

Greece emerged from worldwide bailouts in 2018, almost a decade after a debt disaster compelled it to hunt monetary assist from its European friends and the Worldwide Financial Fund in alternate for austerity to remain afloat.

His newest progress projection upwardly revises an earlier central financial institution estimate for financial enlargement of 1.5% this 12 months from 5.9% 2022, reflecting Greece’s fiscal progress.

Stournaras stated headline inflation would stay at excessive ranges however was anticipated to ease to 4.4%, and he confirmed a authorities projection for a main surplus of 0.7% this 12 months.

Article content material

The nation, he stated, wants to have the ability to obtain sustainable main surpluses round 2% of gross home product within the medium time period, whereas sustaining fiscal credibility is pivotal for the goal of regaining funding grade and to maintain lowering debt, the very best within the euro zone.

“Since 2023 is a 12 months of nationwide elections, to keep up the local weather of confidence within the prospects of the Greek economic system, prudence and accountability is required from political forces, that have to help the nation’s fiscal targets,” he stated. (Reporting by Lefteris Papadimas, Renee Maltezou and Michele Kambas)