Greek Central Bank Chief Upwardly Revises 2023 Economic Growth Forecast Amid Political Uncertainty

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Greece's economy is set to grow by 2.2% in 2023, according to the country's central bank chief, Yiannis Stournaras. Stournaras has urged the country to continue to pursue policies that will promote reform and fiscal prudence in the face of increased political uncertainty caused by upcoming elections. Although Greece emerged from international bailouts in 2018, the country still faces challenges from the impact of the energy crisis, which could put its economic growth at risk. Stournaras has also stressed the importance of maintaining credibility in economic policy implementation to avoid a return to past bad practices.

Despite Greece's progress, the country still has the highest debt in the eurozone, and it is essential to maintain a primary surplus to reduce it. Stournaras has suggested that Greece needs to achieve sustainable primary surpluses of around 2% of gross domestic product in the medium term, and maintain fiscal credibility to regain investment grade. However, Greece faces political uncertainty in the upcoming elections, and there is a risk that the country may lose momentum in its economic progress. Therefore, Stournaras has urged political forces to show prudence and responsibility to support the country's fiscal goals and maintain confidence in the prospects of the Greek economy.

Overall, while Greece's economic growth forecast for 2023 is promising, the country still faces significant challenges in maintaining its economic progress. The impact of the energy crisis and political uncertainty could pose a risk to Greece's economy, and it is essential to pursue credible policies to safeguard its economic prospects. As Greece heads into elections, the country's political forces need to show responsibility and support for the country's fiscal goals to maintain the momentum of the country's economic progress.

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