Chr. Staikouras: GDP growth in 2021 will be stronger than 6.1%

Stronger than 6.1% (of the initial estimate in the draft budget) will be the GDP growth this year and this will be recorded in the final text of the budget that will be submitted to Parliament next Friday.

This was stated (speaking on SKAI radio) by the Minister of Finance Christos Staikouras, pointing out, however, that there are two important uncertainties in the economy: On the one hand in the health field and on the other with the energy crisis, which proved to be more acute and will last longer, but will be temporary and it seems that its intensity will decrease in the first months of 2022.

Especially for inflation, he said that it is most likely that there will be an upward trend in the next two months and “we will probably pass the 4%”. He attributed the rise in prices at European level to high demand due to the recovery of economies that can not be offset by supply, saying “we did not expect (at European level) such a big surge in energy”. He added that the state is ready to cover any costs from the two crises, health and energy.

Asked if there will be a dividend for the weaker citizens from the highest growth rate, the minister – after listing the positive developments in the economy (increase in disposable household income, significant reduction in poverty, increase in deposits, decrease in unemployment, etc.) and tax cuts and support measures – he replied that “at the moment I can not cultivate any additional expectations, because we do not know the intensity of the health and energy crisis.” He said that these reduce the financial possibilities for additional benefits in addition to those announced at the TIF and will be implemented.

At the same time, Mr. Staikouras spoke of strong growth in 2022 and the coming years, adding that “the conditions for an additional increase in the minimum wage next year exist safely”, based on the suggestion that will be made by the Ministry of Labor .

As for the heating allowance, he said that he hopes that the JMC will be issued on Friday and on Monday or Tuesday night to open the relevant electronic platform for applications, in order to make the advance payments of the allowance to the beneficiaries on December 10.

Asked about a possible lockdown at Christmas due to the continuing increase in pandemic cases, he said “the government has made it clear in all tones that there is no such possibility”. He added that the ministry has “built” sufficient cash that is sufficient to deal with any problems, even the rise in borrowing costs observed in the last 10 days. At the same time, he ruled out any thought of postponing the repayment of the “repayable advances” for June, but said that “we are considering whether the offset for the fixed expenses of companies with tax and insurance obligations should be extended for a while in 2022”.

Regarding ENFIA, Mr. Staikouras stated that the exercise of the integration of the new objective values ​​in taxation is currently being completed and the changes of the rates will follow, saying that “we do not want even 1 euro more in the budget revenues and most citizens will pay even lower ENFIA “. He also said that the goal is to start the payment of ENFIA from March and also, as soon as possible, the tax returns.

Finally, he attributed to the double check carried out with the Ministry of Infrastructure the certain delays observed in the compensations of the fire victims, because, as he said, irregularities were recorded in geographical areas of the country and mainly in Attica and the Peloponnese. He cited as an example, a Municipality in which 6 houses were destroyed and 532 applications were submitted for compensation, while in another 1,541 applications were submitted for 145 damaged houses. At the same time, a house declared in Corinth, then declared in Pyrgos and again in Corinth, while a farm became a house and then again a farm.

Source: AMPE