ATHENS – After growing almost 6 percent in 2022 with the lifting of COVID-19 pandemic restrictions and the gradual return of tourists, Greece’s economy is expected to expand by 2.2 percent in 2023.

That’s despite what could be record tourism on a path to bring in more than 20 billion euros ($21.76 billion) and newly re-elected Prime Minister Kyriakos Mitsotakis touting his success in luring foreign investors.

The Central Bank said in its monetary policy report growth was expected to reach 3 percent in 2024 and 2.7 percent in 2025, “if the geopolitical crisis de-escalates, energy prices continue to drop and the negative impact of the monetary policy’s tightening on the Eurozone’s economy is contained,” said Reuters.

The biggest challenge for Greece’s economic policy was regaining an investment grade credit rating, it said, which Mitsotakis said he was pushing for and which could be imminent, ending the era of junk bonds.

But the bank said the government also has to reduce the current account deficit, almost five years after the end of 326 billion euros ($354.74 billion) in three international bailouts which didn’t cut the debt and will take decades to repay.

The 2022 current account deficit, at 9.7 percent of economic output, was mainly due to the increased energy prices and was expected to decline to 7 percent of Gross Domestic Product (GDP) in 2023, the bank said.

Greece needs the implementation of prudent economic policy to achieve annual primary surpluses of around 2% of GDP, it added. “Economic policymakers need to show accountability and commitment to preserve the sacrifices of the past decade and continue the progress achieved,” the central bank report said.