IOBE sees growth of 2.1% and inflation at 3% for this year in relation to the course of the Greek economy.

However, in order for the Greek economy to continue to grow, it will have to continue to increase investment at a higher rate. As the head of the IOBE, Nikos Vettas, said on the occasion of the presentation of his report on the course of the Greek economy for the second quarter of the year, the country will have to make more steps to maintain growth rates of 2% or more will have to makesteps, while fatigue is also noted in terms of the decline of the Greek economy.

Mr. Vettas described the decline in exports of goods as a particularly negative development, despite the fact that the extroversion of the Greek economy expanded, although the country's trade deficit deteriorated further. In fact, data provided by the IOBE show that the domestic value added of our country's exports is below the EU average.

According to Mr Vettas, this apparent exhaustion of momentum has brought the debate on changing the productive mix of the Greek economy, particularly the key components of this mix, namely investment and exports, back into focus.

As he noted, accelerating investment for Greece is a one-way street, so that the fatigue observed on the export activity front in the country does not downgrade the forecasts for 2% growth in 2024. 

At the same time, he said that as long as there is no strong investment, the already strained demographics will worsen, as those leaving the country will outnumber those coming in.

Furthermore, he noted that "It has gone well so far for the Greek economy, but the narrative is beginning to falter, and as a result, a new impetus is now needed."

For 2024, the IOBE forecasts GDP growth of 2.1%, inflation of 3%, investment growth of 14.1% overall and 9.7% in fixed assets. At the same time, unemployment will fall marginally to 10.3%, and according to Mr. Vettas, we have reached its hard core and it will not fall significantly in the medium term. He also expects imports to increase by 1.8% and exports to decline by 0.4%.

At the same time, Nikos Vettas stood on the upward trend recorded in wage costs, noting that inflation has passed on wages and this will create obstacles to its deceleration.

With regard to GDP, Vettas noted that the momentum of exports cannot support 2.1% and that only an increase in investment can support this forecast. That is why the implementation of the Recovery and Resilience Fund with rapid steps is expected to contribute to this direction.

Regarding unemployment, Mr. Vettas pointed to the fact that the reduction in unemployment was halted in the first quarter of 2024.

He warned, however, that getting unemployment below 10% will not be an easy exercise. The first challenge on the employment front is to reduce unemployment and the second challenge is to get young people into the country's workforce, given that there is a significant issue of recruitment on the part of businesses.