Greece’s Economic Growth Forecast Below 2% Amid Investment Shifts and Global Uncertainty

The Bank of Greece predicts a 2.3% growth for the Greek economy this year, aligning with the official forecast from the Ministry of Finance. However, recent developments suggest a potential downward revision to below 2%. Factors such as rising international oil prices due to Middle East tensions and possible declines in tourism from Israel could impact economic performance. Meanwhile, insurance funds have reduced their stock investments amid market uncertainty, shifting towards safer government bonds. Discussions on nuclear power stations in Greece highlight concerns about feasibility without state subsidies and public resistance. Natural gas usage has surged, reducing renewable energy shares in electricity production. In the trading sector, there is intense activity in electricity trading across Europe, involving major players like EDF and Gazprom. Efforts to enhance export-oriented business programs include clauses ensuring companies meet export targets or face penalties. Positive diplomatic movements between Greece and France signal potential investment opportunities, especially in defense. Additionally, the EU no longer views China as a ‘developing’ country, criticizing its trade practices. These developments underscore uncertainties that may affect all forecasts, including those in the European Semester report.