Greek economy to slow in 2023 as surging energy costs, Ukraine war hit spending, says OECD

Greece's economic growth is likely to slow to just 1.1% this year from a 5.1% clip in 2022 as soaring energy costs and continued uncertainty about the war in Ukraine hurt spending and investment, the OECD said on Tuesday.

Since the lifting of Covid restrictions, the Greek economy has recovered strongly thanks to better-than-expected tourism revenues and improving consumer spending and investments, the Organization for Economic Cooperation and Development said in a report published on Tuesday.

However, surging energy costs, supply disruptions and renewed uncertainty, mainly from the war in Ukraine, are sharply slowing the recovery, it said.

"The war is directly affecting Greece's energy supply and costs. Its indirect effects are compressing spending and delaying investment and hiring," the OECD said.

Inflation, driven by rising energy prices, hit a 30...