Top Stories
UBS ups Greek economy’s 2022 growth forecast on tourism tailwind
Global Banking & Finance Review®
Company
ATHENS (Reuters) – Greece’s economy could grow by 5.7% this year from 4.0% previously forecast as the country benefits from a strong rebound in tourism, UBS said in a research report on Wednesday.
ATHENS (Reuters) – Greece’s economy could grow by 5.7% this year from 4.0% previously forecast as the country benefits from a strong rebound in tourism, UBS said in a research report on Wednesday.
“Our new growth projection is 150 basis points above market consensus of 4.2%,” UBS economist Gyorgy Kovacs said in the report.
Tourism revenues are expected to reach 20 billion euros this year, topping projections of 15 billion and last year’s 10.5 billion, including a positive effect on job creation, the report said.
Central bank data showed that non-resident arrivals rose 241.5% in June on the year, with revenue up 224.5%. Arrivals corresponded to 89.0% of their level in 2019, a record year for tourism, while revenue exceeded it.
Greece’s economy expanded in the first three months of the year at a faster pace than in last year’s fourth quarter but on an annual basis the rate of growth eased to 7.0% percent from 8.1%.
Official second quarter gross domestic product (GDP) data is due to be released on Sept. 7.
UBS sees downside risks this year from a gradual deterioration in business sentiment and potential disruption to gas flows to Europe. It revised its 2023 Greek growth forecast down to 4.0% from 4.7%.
It said average inflation could easily top 9% this year.
Greece’s annual consumer inflation slowed to 11.6% in July from 12.1% the previous month, remaining close to its highest level in nearly three decades.
The government is expected to spend 6 billion euros on energy subsidies this year, about 3.0% of GDP. More support may be announced on Sept. 10 although likely to only amount to around 1.0% of GDP, UBS said.
(Reporting by George Georgiopoulos; Editing by Kirsten Donovan)
Gross Domestic Product (GDP) measures the total economic output of a country, representing the value of all goods and services produced over a specific time period.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured as an annual percentage.
Job creation refers to the process of generating new employment opportunities within an economy, often driven by business growth, investments, and economic policies.
Economic growth is an increase in the production of goods and services in an economy over time, typically measured by GDP growth.
Explore more articles in the Top Stories category
