Greek Economy Expected to Grow 6.0% This Year, Slowing to 1.6% in 2023 – IOBE Think Tank
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ATHENS, October 12 (Reuters) – Greece’s economy will grow by 6.0% this year in a baseline scenario, the country’s influential think tank IOBE said on Wednesday, raising a previous growth forecast of 3.5% to 4, 0% made in July.
“The Greek economy is growing faster than expected this year and more than the EU average,” said IOBE director Nikos Vettas. “But the horizon abroad is getting heavier.”
He said the country’s economy has shown remarkable resilience, with exports increasing thanks to the recovery in tourism.
He said tourism revenue more than doubled in the first half, up 147% year-on-year after two years of closure, despite high inflation.
IOBE expects rising consumer spending, which is also driving growth this year, to show fatigue in 2023 due to rising borrowing costs.
The think tank economic growth projects in Greece goes slow down to 1.6% next year, a forecast lower than the government’s projection of 2.1%.
“Certainly, there will be a slowdown in our economy as the cost of borrowing increases. The international crisis is not something that will end easily. Europe is on the brink of recession,” Vettas said.
(Reporting by George Georgiopoulos; Editing by Toby Chopra)
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