EDITORIAL /
Our View: Resilient Greece
CEO, Enterprise Greece
Amid rising global uncertainty, Greece is in a better position to weather the storm. Years of reform, financial discipline and sacrifice have made the Greek economy more resilient to external shocks.
The latest annual report by the Bank of Greece notes that the country’s economy is stronger than it has been in decades. It cites the country’s fiscal stability, renewed investor confidence, a healthy banking system and greater competitiveness, while forecasting GDP growth of 1.9% this year – a bit slower than last year, but still over twice the eurozone average.
The Greek economy is also getting a boost from effective use of available European Union financing, and Greece has been one of Europe’s leaders in utilizing funds from the Recovery & Resilience Facility. Counting the latest request for funding, total disbursements from the RRF are now €24.62 billion, corresponding to 68.5% of the total amount earmarked for Greece and representing one of the highest absorption rates in Europe.
There is also a new dexterity in the Greek economy. While it is too early to say how the crisis in the Middle East will impact tourism, there are signs that overseas visitors are still drawn by Greece’s image as a safe and friendly destination. Other industrial sectors, ranging from refined petroleum products, which account for one third of exports, or power and natural gas exports might even benefit from short-term market uncertainty.
To be sure, the latest geopolitical crisis in the Middle East will have a negative impact on everyone. But Greece’s economy is now more resilient than ever before.