ATHENS (Reuters) – Greece’s economy will grow by an annual 1.5% clip in 2023, the country’s central bank said in a report published on Thursday, sharply cutting its previous forecast.
In its monetary policy report in June, the Bank of Greece had projected Greece’s economic output would rise by 4.1% in 2023.
Increased flows of EU funds would boost Greece’s economy, which is strongly relying on tourism. But rising inflation and tighter financing conditions will hurt debt servicing capacity of households and businesses next year, the report said.
“Any further geopolitical or economic shocks would represent additional downside risks to the economic outlook,” it added.Greece’s economic output is seen expanding by 6.2% this year, more than initially forecast, thanks to higher-than-expected revenues from tourism and private consumption.
The government estimates that economic output will expand by 2.1% in 2023 and by 5.3% this year.
(Reporting by Lefteris Papadimas; Writing by Renee Maltezou; Editing by Chizu Nomiyama)
