BoG: Economic policy should continue on the same path of reforms

Economic policy should continue on the same path of reforms, efficient use of available domestic and European resources and fiscal responsibility, according to the Report on Monetary Policy 2023-2024, submitted on Wednesday to the Greek Parliament.

According to Bank of Greece forecasts, the Greek economy is expected to maintain its growth momentum in the years ahead. Economic growth is projected to be 2.2% in 2024, accelerate to 2.5% in 2025 and moderate slightly to 2.3% in 2026. The main drivers of economic activity in the coming years will continue to be investment, private consumption and exports, while the contribution of government consumption is expected to be marginally negative.

HICP inflation is expected to fall significantly over the next two years. In 2024, it is projected at 3.0%, down from 4.2% in 2023, reflecting large declines in energy and food inflation. Over the medium term, inflation is expected to converge towards, but remain slightly above, the ECB’s target of 2%. Services inflation is expected to be more persistent than the other inflation components, mainly reflecting expected wage increases. Core inflation is projected to drop considerably to 3.3% in 2024 and to 2.4% in 2025, mainly driven by falling non-energy industrial goods inflation.

Source:amna.gr