The Minister of Finance declared on Tuesday that he was optimistic about the progress and prospects of the Greek economy Kostis Hatzidakis and the governor of the Bank of Greece Giannis Stournaras after their meeting at the ministry.

“It is in our hand, by applying the correct economic and fiscal policy away from demagogic temptations, let’s send the message that we are on the path of Europe and common sense” pointed out Kostis Hatzidakis.

“There is consensus with the Minister of Finance”, declared Yiannis Stournaras for his part. “”There is consensus. The omens are excellent (…) Greece is now completely different from what it was 11 years ago, and a clear economic horizon is opening before it. A clear horizon opens for Greece” Mr. Stournaras even stated.

The announcement of the Ministry of Finance about the meeting in detail

“The Minister of National Economy and Finance, Kostis Hatzidakis, met today at the Ministry with the Governor of the Bank of Greece, Giannis Stournaras.

“Both of us are optimistic about the course of the Greek economy. We are in a period in which a series of political and economic conditions coincide that reinforce this optimism”, said Mr. Hatzidakis after the meeting. “There is consensus. The omens are excellent”, said Mr. Stournaras.

Here are the statements in detail:

K. Hatzidakis: “It was with great pleasure that I met today the Governor of the Bank of Greece, Giannis Stournaras, with whom we had excellent cooperation for 2 years when he was Minister of Finance in the period 2012-2014 and I was Minister of Development in this Ministry. This cooperation will of course continue. We agreed to have regular contact. It is our institutional obligation in any case – as the government respects the independence of the Bank of Greece – but we have many more reasons to maintain this contact which we had anyway on a personal level.

Both of us are optimistic about the course of the Greek economy and I believe that we are in a period in which a series of political and economic conditions coincide that reinforce this optimism. The Greek economy has taken steps forward in terms of investment growth, export growth, GDP growth, and unemployment reduction. And it is up to us, by implementing the right economic policy and especially the right fiscal policy away from demagogic temptations, to move forward, sending the message to Greece and abroad that our country is following a path of Europe and common sense, a path like this that followed over the last four years, further accelerating efforts and pleasantly surprising our determination. The goal is for Greece to become a truly advanced European country at all levels, especially in the economy.”

G. Stournaras: “I, in turn, would like to thank Minister Kostis Hatzidakis. With joy, but also with emotion, I returned to this room today. And I’m glad that after 11 years we are speaking in different tones.
Greece is now completely different from what it was then and a clear economic horizon is opening before it.

The Minister and I had the opportunity to review the economic developments: Macroeconomics, fiscal, banking system. And we came to one word: There is consensus. And I told him that, of course, in addition to the matters in which we have jurisdiction, which are matters of monetary policy, matters of financial stability, the statute provides that the Bank of Greece is also an advisor to the Greek State on any matters it can help and the Ministry certainly wants to aid. We have an investigation department, perhaps the largest in the country. It will be at the disposal of the Minister of Finance in any matters that require the assistance of the Bank of Greece. I think the omens are excellent.”

A jump of half a percentage point will be the rate of growth of the Greek economy in 2024, in accordance with the forecasts of the State Budget Office in the Parliament, to the extent that it recovers the investment grade in the fourth quarter of the year.

In the main scenario of the Office, the growth rate is predicted this year and next year at 2.2%, with inflation at medium levels this year at 4.6% and next year at 2.2%.

It is recalled that GDP growth by 2.2%, and growth rate to accelerate to 3% for 2024, and 2.7% in 2025the Bank of Greece predicts in the Monetary Policy Report submitted to the Parliament on Friday.

Inflation is predicted this year to decline to 4.3% from 9.3% last year, and will be 3.8% in 2024 and 2.3% in 2025; although food items, non-energy industrial goods and services are expected to contribute incrementally to its dynamics.

“In March and April 2023, two houses changed the outlook of the credit rating to positive from stable, which portends the upgrade to the investment category in a short period of time”emphasizes Giannis Stournaras in the annual report of the Bank of Greece on the Greek economy.