The growth of the Greek economy is expected to remain strong at 3.5% in 2022 despite the negative effects of the war in Ukraine, according to the International Monetary Fund in its latest assessment under Article IV of its statutes released today.
High energy prices are expected to raise average inflation to 6.1% in 2022, the Fund said. Both growth and inflation are expected to slow in 2023, reaching 2.6% and 1.2% respectively.
For the public debt, the Fund notes that it is on a downward trajectory and the refinancing risks seem manageable in the medium term.
He warns, however, that significant downside risks continue to cloud the outlook, especially from the further escalation of the war in Ukraine and the still significant uncertainties associated with the pandemic.
In particular, the Fund notes in its analysis that the Greek economy has recovered strongly from the severe recession caused by COVID-19, with production returning to pre-pandemic level in 2021. Strong fiscal response, easing monetary policy and prudential policies and significant EU support was key to promoting recovery.
Despite the difficult environment, reforms have made progress in various areas, such as digitization, privatization, improving the fiscal policy mix and consolidating bank balance sheets. Greece completed the early payment of all outstanding IMF credit in April, ending its post-financing evaluation.
Source: Capital
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