Staikouras: Double growth figures for the economy in the “heart” of the crisis

In the “heart” of the energy crisis, the economy is growing at a rapid rate, almost twice the European average, stressed the Christos Staikouras at the Economist’s conference on sustainable economics in times of crisis.

“The estimate is revised upwards to 5.3% for 2022, from an initial estimate of 3.1%. In the same period, the European average is estimated at 3.1%”, pointed out the Minister of Finance.

As the minister stated, with today’s data, the country’s GDP is expected to be around 210 billion euros in 2022 and 220 billion euros in 2023.

In particular, according to Mr. Staikouras:

1st. GDP is growing strongly.
In the “heart” of the energy crisis, the economy is growing at a rapid rate, almost twice the European average.
The estimate is revised upwards to 5.3% for 2022, from an initial estimate of 3.1%.
During the same period, the European average is estimated at 3.1%.
With today’s data, the country’s GDP is expected to reach around 210 billion euros in 2022 and 220 billion euros in 2023!

2nd Growth is also based on the impressive increase in investments and exports.
This year, it is estimated that, following last year’s – and at record levels – year, we will have a new historical performance in foreign direct investments and exports of goods and services.

Particularly:

• Foreign direct investment reached €5 billion in 2021, recording the highest performance in the last twenty years.
• The upward trend continues in 2022, since in the 1st semester they have exceeded 90% of the previous year.
• Exports were set at 41% of GDP in 2021, double the pre-crisis levels.
• Today, Greece exports more than France, Italy and Spain, while it has impressively increased exports of high-tech goods.

3rd. Unemployment is shrinking.
Having fallen by around 6 points, compared to 2019, it is at its lowest level in the last 12 years, with a more significant reduction in the level of youth and female unemployment.

4th The “red” loans in the banks’ portfolios decreased significantly.
They stood, at the end of the 1st half of 2022, at 14.8 billion euros, or 10% of total loans, from 75.3 billion euros, or 44% of the total, in June 2019.

5th The country’s prestige and credibility are strengthened.
The country came out of the regime of enhanced supervision, prepaid all the loans of the International Monetary Fund, was upgraded 11 times in the last three years – 4 of them after the outbreak of the war in Ukraine –, returned to European normality and is approaching investment grade.

In this context, Mr. Staikouras mentioned, the Ministry of Finance, with a view to the timely and effective transition of the Greek economy, plans and implements actions and policies based on 4 pillars.

1st Pillar: We modernize the corporate governance framework.
With Law 4706, already in 2020 – and in the midst of the global health crisis – we strengthened transparency and sustainable corporate development, reforming the institutional framework of Corporate Governance of Limited Companies and the Capital Market.
Last week we extended this framework to DEKOs as well.

2nd Pillar: We achieve economic growth that is also based on sustainability.
The National Recovery and Resilience Plan focuses on the green and digital transition, areas which represent – ​​cumulatively – 57% of the total budget.
A recent example is the enactment of the incentive of a 100% additional discount on the costs of small and medium enterprises related to the green economy, energy and digitization.

3rd Pillar: We plan new strategies to strengthen sustainable financing, with an emphasis on the Capital Market.
In cooperation with the European Commission and the European Bank for Reconstruction and Development, in the context of the implementation of two important technical assistance projects, we promote:

• the identification and adoption of public policy tools to cover the financing gap towards the green transition, and
• the preparation of a strategy for the overall upgrading of the Greek capital market, in order for it to respond effectively to the new international conditions.

4th Pillar: We promote productive collaborations between the Government, Supervisory Authorities and the Banking Sector.
For this purpose, the Ministry of Finance, in March 2022, set up a Working Group on Sustainable Financing and the Green Economic Transition.

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