Stournaras: Greek economy’s growth rate remains unchanged at 2.3% in 2025

Uncertainties and risks from the international environment, following the announcement of the imposition of high tariffs by the US government – which may lead to a generalized trade war – are foreseen for the Greek economy in the Annual Report of the Bank of Greece (BoG), presented on Tuesday during the annual general meeting of shareholders.

Despite this, the BoG maintained its forecast for the growth rate of the Greek economy in 2025 unchanged at 2.3%, a performance much higher than the average of the eurozone. However, as pointed out in the report, quantifying the effects of a trade war is an extremely difficult process, as it depends on factors such as the duration and intensity of the measures and countermeasures, the countries involved and the ability of the economies to adapt to the new conditions.

As Bank of Greece Governor Yannis Stournaras mentioned in his speech, Greece, although it has little dependence on the US and is therefore expected to have limited direct impacts from the tariff increase, may be affected indirectly, as an overall slowdown in global trade could reduce demand for Greek products and services and limit growth prospects. Finally, increased uncertainty in the markets acts as a deterrent to investment, as businesses avoid taking risks in an unstable environment.

“For Greece, the answer to these challenges lies in continuing a credible fiscal policy, attracting investment and implementing reforms aimed at boosting productivity, promoting innovation and shifting towards a more sustainable development model, which will be based on the diversification of the productive base and the development of new sectors with high added value,” the governor of the Bank of Greece pointed out.

Stournaras underlined the need to continue reforms in order to strengthen investment confidence and attract new capital, sounding the alarm over the delays observed in the Justice sector. As he pointed out, despite the progress that has been made in recent years, “Greece’s ranking in relation to other European countries remains low, especially with regard to the rule of law, the speed of justice and the predictability of the implementation of laws. This fact underlines the need for continued reforms in order to further strengthen trust in institutions – a crucial element for the stability of the economy and resilience to future crises.”

Source: pagenews.gr