The 2023-2024 Monetary Policy Report was submitted to the Speaker of the Parliament by the Governor of the Bank of Greece

“Economic policy should continue on the same path of reforms, efficient use of available domestic and European resources and fiscal responsibility…”.

This is emphasized in the Report on Monetary Policy 2023-2024, which was submitted today to the Greek Parliament, to the President of the Hellenic Parliament, Mr. Konstantinos Tassoulas, by the Governor of the Bank of Greece (BoG), Mr. Ioannis Stournaras.

The Report records the prospects of the Greek economy, which, as noted, maintains its growth potential, recording rates higher than the eurozone average, while inflation is also falling.

In more detail, the Report states:

-And during 2024, the Greek economy continues to grow at a satisfactory pace. According to the forecasts of the BoE, an increase in the Gross Domestic Product (GDP) is expected by 2.2% in 2024, 2.5% in 2025 and 2.3% in 2026. As the main driving forces of economic activity in the coming years they will continue to be investments, private consumption and exports.

Inflation is expected to decrease significantly in the next two years, while in the medium term it is estimated that it will converge towards the European Central Bank’s target of 2%.

-In 2023, Greece recorded the second largest improvement in the primary fiscal outcome and de-escalation of public debt as a percentage of GDP among eurozone countries, with the fiscal deficit remaining below the 3% of GDP threshold with a safe margin.

However, it is emphasized that: “Necessary conditions for strengthening the sustainability of the debt are the safeguarding of fiscal credibility and the effective utilization of European resources”.

It is also observed that: “Investors’ participation in the new bond issues of the Greek Government has significantly increased, which brings about a compression of borrowing costs”.

-The prospects for the credit ratings of the Greek banks are also positive, while their first upgrades in the investment category have already been carried out, a fact that reduces their borrowing costs from the international markets, with significant benefits for their net interest income. At the same time, the reduction of the key interest rates of the ECB is approaching the medium-term target of 2%, creating the conditions for a general reduction of domestic bank interest rates.

Finally, the Report draws attention, that: “despite the positive prospects of the economy for the coming years, there is no room for complacency in an international environment characterized by new uncertainties and geopolitical tensions, as well as technological and environmental challenges”.