Greek economy to grow by 2.2% this year, 3.0% in 2024, BoG governor says

Τhe Greek economy is expected to grow by 2.2% this year and by 3.0% in 2024, Bank of Greece governor Yannis Stournaras said on Wednesday.

In comments made to Global Finance magazine, the central banker said he expected the Greek economy to grow by 2.2% this year, due to an expected slowed of economic activity in the Eurozone and a milder increase in private consumption. He noted that a 3.0% growth rate in 2024 could be achieved only on condition that the implementation of investment plan funded by the RRF will proceed as scheduled, that a geopolitical crisis will not deteriorate and that a stricter monetary policy will not leave any permanent trauma on the economy.

Stournaras said he expected the inflation rate to fell to 3.8% in 2024 (from 4.3% in 2023 and 9.3% in 2022), reflecting strong inflationary pressures on food prices, non-energy industrial goods and services.

The Greek central banker also called for a reform of the public sector to meet higher international standards, through dealing with chronic weaknesses which are hurting competitiveness and act as counter-incentives for investments.