Greece: Greek Economy: Outlook for the second quarter of 2023 and beyond

Tourism, the big industry

Tourism has the greatest contribution to the development of the Greek Economy. As of January 2023, arrivals at the country’s airports are up 4% compared to 2022. Top industry executives expect a record year in tourism revenue given bookings and the first year without restrictive measures due to a pandemic. Another important factor is the lengthening of the tourist season.

Foreign Direct Investment (FDI)

Greece’s efforts to attract foreign direct investment have gained traction and are likely to bear fruit in the coming months. The government has implemented reforms to improve the business environment, reduce red tape, digitize government services and strengthen legal and regulatory frameworks. These measures, combined with Greece’s strategic location, skilled workforce and investment incentives, make it an attractive destination for foreign investors. Sectors expected to attract significant FDI include energy, infrastructure, real estate and technology. The goal for the Greek economy is to cover the huge investment gap of the ten-year crisis and the two-year pandemic.

Green Transition and Sustainable Development

Greece has recognized the importance of sustainable development and the green transition. The government has outlined ambitious plans to promote renewable energy, reduce carbon emissions and boost environmental sustainability. Investments in renewable energy projects such as wind and solar energy will not only contribute to a cleaner environment, but will also create new job opportunities and stimulate economic growth. The goal is to cover 80% of electricity from renewable energy sources.

Major infrastructure projects

Another important factor in boosting the Greek economy is the completion of major infrastructure projects. Within 2023, projects amounting to 22.5 billion euros are underway or completed. The aim is to improve transport with the construction of major road axes, the energy interconnection of the islands with mainland Greece with the aim of energy security and the modernization of transport with the construction of railways and metros.

As Greece enters the second quarter of 2023 and beyond, the country’s economic outlook appears positive. With a growing tourism sector, increased foreign direct investment, a focus on sustainable development and a commitment to digital transformation, Greece is well positioned for growth. Continued efforts to implement reforms, manage public finances and adapt to global challenges will be vital to maintain momentum and unleash Greece’s full economic potential. As always, it is important to monitor global economic trends, policy changes and unforeseen circumstances that may affect the Greek economy moving forward.

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