Greece Central Bank Expects 5% Growth in 2022

The Greek central bank said in an interim monetary policy report on Wednesday that the Greek economy is expected to grow by 5.0% next year after an expected expansion of 7.2% this year, according to Reuters.

The Greek Central Bank explained in the report: “In 2022, the growth rate of the economy is expected to reach 5.0% and 3.9% in 2023, provided that the economy continues to strengthen significantly from tourism, the recovery of the euro area and the acceleration of investments.”

It noted that the recent deterioration in epidemiological data, combined with the lower vaccination coverage of the population compared to the European average, increases uncertainty and risks to economic growth.

However, the medium to long-term outlook for the Greek economy remains "very positive", buoyed by the launch of investment projects and reforms linked to the National Recovery and Resilience Plan.

"Consumer spending is expected to continue increasing over the next two years, albeit at a more moderate pace, in line with the increase in employment," the report said.

"The strong inflationary pressures this year largely reflect the underlying effects of negative inflation in 2020 and sharp increases in the prices of energy, food and imported intermediate products," he added. But the inflation rate in Greece is still one of the lowest in the eurozone, and in 2021 as a whole, it is not expected to exceed 0.6%.