Bank of Greece set to trim growth outlook

The Greek central bank is set to trim its growth outlook for next year significantly in its upcoming December forecasts.

Bank of Greece Governor Yannis Stournaras told Politico that his institution now expects the Greek economy to expand 2.4% this year, and by 2.5% in each of the two subsequent years.

In the latest official forecast in June, the central bank forecast 2.2% growth for this year, 3% for next and 2.7% for 2025.

The numbers represent a significant slowdown after a robust recovery from the pandemic.

GDP in the region’s former trouble spot expanded by 8.4% in 2021 and 5.6% last year, thanks largely to pent-up tourism demand.

But even after shifting down a gear, it’s still set to grow faster than most of its eurozone peers.

That growth is ensuring that a rapid decline in Greece’s debt-to-GDP ratio continues.

Having peaked at well over 200%, it currently stands at around 165% and will fall to 144.7% by 2025, the bank estimates.

The bank is due to release official forecasts in its regular interim monetary policy report in December.