EBRD sees Greek growth at 5.2% this year

The European Bank for Reconstruction and Development (EBRD) expects the Greek economy to have strong growth rates of 5.2% of gross domestic product in 2022, followed by a growth rate of 2.2% in 2023, according to a report released on Wednesday.

The EBRD noted that the strong recovery of 2021 was followed by equally strong growth in the first half of 2022, with rates of 8% in the first quarter and 7.7% in the second.

This was partly due to the low basis for comparison due to pandemic lockdowns but also driven by strong private consumption and higher state spending, it said.

It also noted a strong performance in exports, including of high technology, which approached that of Germany as a percentage of GDP, and the contribution of tourism.

At the same time, it saw a reversal in short-term indicators of confidence, such as the PMI, as global energy markets struggled with higher insecurity and the eurozone began to be threatened with a recession.

This would lead to growth inevitably slowing, according to the EBRD, though it would continue due to the subsidies and loans from the EU Recovery and Resilience Fund.