Greek economy set to grow 4.5% in 2022 on tourism rebound

The country’s economy expected to grow 7% this year

Greek port city Thessaloniki. Greece's economy is projected to grow by 4.5 per cent next year. Photo: Thessaloniki Tourism Organisation

Greece's economy is projected to grow by 4.5 per cent next year, after a stronger-than-expected rebound this year on higher tourism revenues and a boost from state support measures, the country's fiscal council said on Friday.

The government expects the economy to grow about 7 per cent this year – better than the 6.1 per cent it had projected in October's draft budget, finance minister Christos Staikouras said on Thursday.

The fiscal council, an independent body that evaluates macroeconomic projections, said it adopts the government's projections but also said there were risks for 2022.

“Fiscal risks may arise from any resurgence of the pandemic that will require new measures to support the economy,” it said.

“Prolonged inflationary pressures – especially in energy – might require compensatory measures.”