Despite COVID, Energy Crisis, Greece On Track for Big Growth

September 13, 2022

ATHENS – What’s expected to be another record tourism year despite the waning COVID-19 pandemic is fueling enough economic growth in Greece even to withstand pouring state aid into helping households deal with soaring energy costs, bank chiefs said.

Estimates have been that growth will exceed 5 percent of the Gross Domestic Product (GDP) of 197.2 billion euros ($200.3 billion,) after an impressive 7.7 showing for the second quarter of 2022.

Even record inflation that’s cutting into the purchasing power of Greeks and scaling back supermarket sales isn’t having a significant deterrent effect on the economy coming back, said Kathimerini.

The chief Eurobank Fokion Karavias and Piraeus Bank Christos Megalou however said there shouldn’t be any relaxation of trying to accelerate a recovery and that fiscal restraint is needed.

But Prime Minister Kyriakos Mitsotakis said he would give 5.5 billion euros ($5.41 billion) in handouts ahead of the 2023 elections, but backed away from a pledge to consider reducing the 24 percent Value Added Tax (VAT) on food.

It’s a balancing act to reach out to voters but keep the state coffers in line and try to get Greece back to market status with ratings agencies to help lure more Foreign Direct Investment (FDI.)

Karvias said the second quarter growth “in a deteriorating international environment was a surprise, exceeding all expectations and confirming the dynamic recovery after the pandemic,” the paper reported.

The reasons, said Megalou, were “strong domestic demand and the course of tourism,” factors which, he notes, “are expected to continue bolstering growth in the third quarter.”

He added that, “The dynamic of these two factors was reflected in the very strong growth of the second quarter … as well as in the upward revision of the GDP in the first quarter from 7 percent to 8 percent.”

He said that, “Despite the expected slowdown in the fourth quarter, we consider the possibility of growth exceeding the level of 5.8 percent, which is our forecast at Piraeus Bank for the whole of 2022, to be significant.”


PRAGUE - Main opposition SYRIZA-Progressive Alliance leader Alexis Tsipras was in Prague on Thursday to participate in the Party of European Socialists (PES) preparatory summit.

Top Stories


A pregnant woman was driving in the HOV lane near Dallas.

General News

FALMOUTH, MA – The police in Falmouth have identified the victim in an accident involving a car plunging into the ocean on February 20, NBC10 Boston reported.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.


Two Boats Carrying Refugees Sink Off Greek Islands, 17 Dead

MYTILENE - Villagers on the Greek island of Kythira rushed to help pull refugees and migrants to safety after a sailboat struck rocks and sank, saving 80 but at least 15 are missing.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. abc@xyz.com

You may unsubscribe at any time using the link in our newsletter.