The geopolitical developments and the war conflicts in Ukraine and the Middle East that could lead to a revival of the energy crisis, but also the uncertainty over the course of interest rates, which affects consumption and investments, are the main risks for the Greek economy based on the 2024 budget.
From the OECD’s point of view, the main challenges for Greece are the strengthening of productivity and the response to climate change. The Organization pointed out that our country should continue reforms especially in justice.
It is also emphasized that the main risks for the Greek economy include:
- Persistent inflation or an energy crisis that may lead to a reduction in consumption and investment.
- Dealing with climate change if one considers the effects of the recent natural disasters in Thessaly.
According to the OECD economic survey report, the Greek economy is projected to grow by 2.4% this year and 2% in 2024 rising again to 2.4% in 2025. The Paris-based organisation said that Greece’s strong economic rebound from the COVID-19 crisis is being put to the test by surging energy and food prices and renewed global uncertainty.
The survey said that continued policy reforms over recent years have been a key factor behind the country’s robust post-pandemic recovery and have put the economy in a stronger position to face current headwinds.
GDP has returned to pre-pandemic levels, helped by effective government support, a revival in tourism and exports, and improved investor and consumer confidence. Employment growth has been strong, creating over a quarter of a million new jobs since before the start of the pandemic, reducing the unemployment rate to a 12-year low of 11.6%.
