Greek economic growth seen slowing to 1.4% in 2023 – IOBE think tank

Greece’s economic growth will slow to 1.4% this year, the country’s influential think tank IOBE said on Tuesday, revising downwards a previous forecast in October of 1.6% growth.

IOBE’s new projection is below the government’s 1.8% estimate.

“It will be a difficult year,” IOBE head Nikos Vettas said, adding that high inflation and interest rates are expected to hurt investments and exports. Geopolitical uncertainty was also expected to persist, he said, referring to the war in Ukraine.

IOBE also expects consumer spending, a driving factor for growth in 2022, to wane this year as a result of higher borrowing costs and a stagnation in exports.

Despite the difficulties, IOBE pointed to another strong year of tourism forecast in 2023, as well as inflows from Europe’s recovery fund, which will support the expansion of the Greek economy at a time when other European economies might face recession.
Source: Reuters