Greece’s economic outlook has improved notably, but significant challenges remain, the IMF said in a report released on Wednesday.
The economy has resumed income convergence, ending a decade of stagnation with high unemployment and low investment amid large deleveraging, it said and added: “Real GDP has expanded beyond the pre-pandemic trend level, driven by the cyclical recovery of tourism demand and the resumption of structural reforms and investment in the context of Next Generation EU,” ANA reports.
“Strong growth and high inflation have brought the public debt-to-GDP ratio down below its pre-pandemic level with limited financing risks in the medium term due to the favorable debt structure. However, despite regaining sovereign investment grade status and improving bank balance sheets, the economy is facing macro-financial challenges amid significant monetary policy tightening, persistent core inflation, and rising real estate prices. Structural imbalances arising from low household savings and still low level of investment, as well as increasing risks from climate change, are weighing on medium-term growth prospects.”
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