Bank of Greece: Growth with Weaknesses and Risks

The Bank of Greece, in its latest report, points out that growth in Greece, although positive, does not cover the weaknesses and risks facing the Greek economy.

According to the report, growth relies heavily on consumption and subsidized investments from the Recovery Fund, rather than productivity. This creates uncertainties about the long-term sustainability of growth.

In addition, the report refers to the tightness of the labor market, potential wage pressures, possible natural disasters, and low absorption of funds from the Recovery and Resilience Facility. It also highlights the increase in the dependency ratio, as the population ages and the low birth rate remains a problem.

The report emphasizes the need to upgrade human resources, attract foreign workers with skills, reforms that strengthen research and innovation, and expand digital transformation. It also refers to the need to accelerate the administration of justice.

It is noted that if we do not manage to include the planned projects in the Recovery Fund by the end of 2026, the money we are entitled to will be lost.