Greek economy strong enough ‘to withstand brief Middle East war’

The Greek system is connected solid footing to weather a short-term geopolitical shock, such arsenic a Middle East struggle lasting a fewer weeks, Bank of Greece Governor Yannis Stournaras said Thursday during a lecture organized by the American Hellenic Educational Progressive Association (AHEPA) successful Frankfurt.

Presenting connected “The Greek Economy Ten Years After the Crisis,” Stournaras said that arsenic agelong arsenic vigor prices ease, maturation is expected to stay astir 2.1%, surpassing, erstwhile again, the Eurozone mean and supporting continued convergence with European income levels.

He cautioned, however, that the outer situation remains fragile. Geopolitical instability, uncertainty, and the imaginable escalation of the Middle East war airs risks, and a prolonged war could trigger higher ostentation and slower growth, Stournaras underlined. 

Reflecting connected lessons from the Greek fiscal crisis, Stournaras said Greece has shifted absorption from betterment to “strategic acceleration”, aiming for person alignment with the Eurozone. Achieving this requires closing concern gaps, maintaining productivity gains done caller technology, continuing reforms, and efficaciously mobilizing domestic, EU, Recovery Fund, and overseas investments, “particularly successful sectors producing internationally tradable goods and services.” 

Stournaras emphasized that macroeconomic, fiscal, and fiscal stability indispensable stay central, while investments, on with the greenish and integer transitions, should beryllium seen arsenic strategic opportunities alternatively than obligations.

Under these conditions, helium concluded, “Greece is successful a presumption not lone to support the recovery, but besides to determination into a signifier of continuously higher concern rates, productivity growth, and strengthening of economical resilience.”