Clouds gather over Greek economy

Storm clouds are gathering over the Greek economy, at a time when, apart from the domestic challenges that continue to overshadow its prospects, such as demographics, climate change and the still large investment gap with Europe, the strengthening of external geopolitical tensions is creating a new scenario of uncertainty.

The already weak growth of Europe's major economies, which Greece also relies on for investment, exports and tourism, combined with the real risk of new upward pressures on inflation, pose an additional challenge, with the government forecast for growth of 2.9% this year and even the expected revised forecasts (estimated near 2.5%) seem extremely ambitious.

The external macroeconomic environment remains full of challenges, with increased security uncertainties, notes Spyridoula Tzima, deputy vice president of the DBRS Morningstar rating agency, to...