Lowered growth expectations

Experts say the Greek economy will grow at a slower pace than expected, affecting expectations for inflation and also for interest rates.

Eurobank analyst Tassos Anastasatos predicts in a note that the Greek economy will grow by no more than 2% in 2024, much lower than the 2.5% predicted by the government in April, when it had downwardly revised the 2024 budget's prediction of 2.9% growth.

In its June Monetary Policy Report, the Bank of Greece had already proved to be less optimistic than the government, predicting 2.2% growth for the year.

The anemic growth is not helped by the weakness of the rest of the eurozone, especially Germany. But the Eurobank analyst is hopeful that growth could accelerate to 2.4% in 2025 and 2026, as the whole of the eurozone recovers and the projects funded through the EU's Recovery and Resilience Fund progress.

The fact...