x

Economy

Shocking Energy Costs, Ukraine War Aid Will Slow Greece’s Growth

ATHENS – After growth of 5.1 percent in 2022 during the waning COVID-19 pandemic, Greece’s economy is expected to expand just 1.1 percent in 2023 because of the effect of high energy costs that required state subsidies.

Those were driven by the effect of Russia’s ongoing invasion of Ukraine that has continued uncertainty about supply chains and other factors that have hurt spending and investments, the Organisation for Economic Co-Operation and Development (OECD) said, reported Reuters.

Greece in 2022 lifted health measures during the pandemic and benefited with a tourism rush that brought in some 18 billion euros ($19.35 billion) and helped the government provide more than 10 billion euros ($10.73 billion) in energy bill aid.

There was also stronger than expected interest by foreign investors but the unabated hike in energy costs, supply disruptions and renewed uncertainty, mainly from the war in Ukraine, are sharply slowing the recovery, it said.

“The war is directly affecting Greece’s energy supply and costs. Its indirect effects are compressing spending and delaying investment and hiring,” the OECD said, after inflation hit a 30-year high of 12 percent before receding somewhat.

Greece is expected to receive about 31 billion euros ($33.31 billion) in loans and subsidies from Europe’s recovery fund by 2026 to make its economy more digitalized and greener, the news agency said.

“The government’s energy support measures have delayed the return of the primary budget surplus to its medium-term target of 1.5 percent to 2 percent of GDP, weighing on Greece quickly achieving an investment grade rating,” the OECD said.

In joint statements with Greek Prime Minister Kyriakos Mitsotakis, the OECD’s Secretary General Mathias Cormann praised Greek reforms but said the country should keep reducing its high debt even more.

The ratio of debt to the Gross Domestic Product at the end of 2022 was “still very high,” at 175 percent, said Cormann, although Greece made early repayments of part of 326 billion euros ($350.28 billion) in three international bailouts.

“Greece must continue to pursue reductions in public debt ratios, while promoting a dynamic economy,” he added, the country likely to report a 2022 small primary surplus after three years of deficits.

RELATED

NAFPLIO, Greece (AP) — A group of Egyptians jailed for nearly a year pending trial for a deadly shipwreck were released from jail Wednesday, a day after a Greek court threw out the case against them on grounds that it had no jurisdiction to try it.

Top Stories

Columnists

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

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.

Video

Tornado Kills Multiple People in Iowa as Powerful Storms Again Tear Through Midwest

GREENFIELD, Iowa (AP) — Multiple people were killed when a tornado tore through a small town in Iowa and left a wide swath of obliterated homes and crumpled cars, while the howling winds also twisted and toppled wind turbines.

NAFPLIO, Greece (AP) — A group of Egyptians jailed for nearly a year pending trial for a deadly shipwreck were released from jail Wednesday, a day after a Greek court threw out the case against them on grounds that it had no jurisdiction to try it.

ATHENS - As Greece has been focused on the #MeToo movement about sexual harassment and femicide, a disturbing statistic showed that two children go missing every three days in Greece, and an adult every two days.

Cyprus was occupied by humans as long as 14,257 years ago, far earlier than previously believed, said a study in the Proceedings of the National Academy of Sciences led by Prof.

The stepbrother of Princess Tatiana of Greece and Denmark vanished in a luxury neighborhood of the celebrity haven of Malibu, California, with officials worried for his safety as they try to find him.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. [email protected]

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