Greek Development Minister predicts at least 5% GDP growth in 2022

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Greek Development and Investments Minister Adonis Georgiadis forecast that GDP growth in Greece will exceed 5 pct in 2022.

Georgiadis on Wednesday participated in the first meeting of the Board of Directors of the Athens Chamber of Commerce and Industry this year.

According to a statement, the minister outlined the government’s reform initiatives to further strengthen the investment climate and estimated that GDP growth will exceed 5 pct in 2022.

He noted that the combined financial resources that Greece will have at its disposal from various sources this year in order to change the productive model of the country will be the highest ever.

Georgiadis explained that these resources will come from the Recovery Fund, the 2014-20 NSRF and 2021-27 NSRF programmes, the public investments programme, as well as private investments through the Development Law.

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Meanwhile, the Greek unemployment rate fell to 13.3% of the workforce in November 2021 from 16.1% in November 2020 and 13.4% in October 2021, Hellenic Statistical Authority said on Wednesday.

More specifically, the number of unemployed people totaled 624,858, down 121,560 or 16.3% compared with the same month in 2020, but up 3,551 or 0.6% compared to October 2021.

The unemployment rate among women was 17.2% (down from 20% in 2020), while among men it was 10% (from 13.1%).

The unemployment rate in the 15-24 age group was 34.3% in November (37.6% in November 2020), while in the 25-74 age group it fell to 12.2% from 15.1%.

The number of employed people totaled 4,087,369, up 5.4% from November 2020 and 1.4% from October 2021.

READ MORE: Greek clothing and textiles industry strongly recovers in 2021, report says.

At the same time, offers in a book-building process launched by Greek authorities to issue a 10-year bond loan exceeded 11 billion euros within the first few hours of the process, with the interest rate of the issue falling from 1.89% to 1.83%, sources said.

Greece’s Public Debt Management Authority plans to issue new bonds worth at least 12 billion euros this year, down from 14 billion in 2021, in a move aimed to highlight that Greece is able to borrow at competitive terms.

Economists expect that Greece will seek to raise as much capital as possible in the first quarter of the year before the termination of the PEPP programme by the European Central Bank.

The Greek state budget revenue exceeded targets in 2021, totaling 59.24 billion euros, up 2.1% from targets, while budget spending was down by 420 million euros compared with 2020, the finance ministry said on Monday.

In a report on provisional budget execution data, the ministry said that tax revenue was 47.602 billion euros, up 1.6% from targets and noted that the final result will be much higher since payment of car registration fees was given a two-month extension.

The ministry said that a crucial year like 2021 with a high fiscal cost because of budget spending to deal with the pandemic, the primary result showed a deficit of 10.985 billion euros.

This is down from a budget target for a primary deficit of 12.946 billion and a primary deficit of 18.195 billion in 2020.

Alternate Finance Minister Thodoros Skylakakis, commenting on budget execution data said the figures were provisional and that the ministry will have to wait until the release of final figures.

However, he noted that budget execution was better than expected and that it was a significant development for the fiscal credibility of the Greek state.

In the January-December 2021 period, the state budget recorded a deficit of 15.529 billion euros (amended cash basis) from a budget target for a deficit of 17.487 billion and a shortfall of 22.806 billion in 2020.

The primary result showed a deficit of 10.985 billion euros, from a budget target for a deficit of 12.946 billion and a primary shortfall of 18.195 billion in 2020. Net revenue was 54.220 billion euros, up 1.5% from budget targets.

Regular budget revenue was 59.324 billion euros, up 2.1% from targets. Tax returns totaled 5.104 billion euros, up 443 million from targets, while Public Investment Programme revenue was 4.519 billion, down 275 million euros from targets.

In December, budget revenue totaled 5.744 billion euros, up 474 million from monthly target, while regular budget revenue was 6.578 billion, up 835 million from targets.

Tax returns totaled 833 million euros, up 361 million from targets, while Public Investment Programme revenue was 751 million, up 145 million euros from targets.

Budget spending totaled 69.750 billion euros in 2021, down 1.6% from targets.

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