Greek economy seen growing by 2.1 per cent next year

ATHENS: Greece’s economy is projected to grow at a slower pace next year ater a strong rebound this year thanks to tourism, as soaring energy costs and higher inflation are expected to curb domestic demand.

Under the government’s 2023 drat budget published on Monday, economic output is seen increasing by 2.1 per cent next year from 5.3 per cent this year.

Next year, Greece is expected to achieve a 0.7 per cent of gross domestic product primary surplus - which excludes debt servicing outlays - from a 1.7 per cent budget deficit in 2022.

The country’s public debt, the highest in the eurozone, is seen dropping to 161.6 per cent of GDP from 169.1 per cent of GDP this year, according to the drat budget submited to parliament.

“The 2023 budget is being drated under conditions of extremely high uncertainty, regarding geopolitical developments at a global level,” finance minister Christos Staikouras and deputy finance minister Theodore Skylakakis said in a statement.

Greece’ s economy is growing more than expected in 2022, powered by strong tourism revenues, domesticdemand and as pike in investments. however, consumer spending has faced challenges with inflation hiting its highest rate in three decades.

The drat budget forecast annual inflation easing to 3 per cent by the end of 2023, from 8.8 per cent this year.

The forecasts for growth and inflation have a high degree of uncertainty and may be revised by the European Commission before the submission of the final drat of the budget, the finance ministers said.