The Athens stock exchange has recorded losses of over 13% since the Russian invasion of Ukraine began on February 24.
Specifically, 13.43% has been lost, while the market's capitalisation has fallen by 9.345 billion euros.
The Large Cap index has fallen by 15.0% and the Mid Cap index by 8.6%.
The heaviest losses (-26.64%) were recorded in banks.
Meanwhile, Goldman Sachs and UBS are giving a vote of confidence in the Greek economy and the Greek stock market.
Goldman estimated that the General Price Index will rise to 1,175 points in the next 12 months while UBS raised its estimates for growth in Greece, despite the impact of the war in Ukraine.
Specifically, it raised its growth forecast for 2022 to 5.5% or 1.5 basis points above market average estimates and 60 basis points above the EU Commission's forecasts.
None-the-less, the consequences of the war in Ukraine are particularly painful for the Greek economy, exacerbating an already negative climate on the inflation front, which is negatively affecting households and businesses.
In the face of this grim situation, the government is trying to find effective tools to mitigate, as far as possible, the impact on the economy.
Finance Μinister Christos Staikouras stated to AMNA that "the Greek government is already doing, and will continue to do, its best to reduce the negative consequences of high prices."
The minister stressed that "the Greek economy, following the release of 2021 figures, showed great resilience as well as strong and sustainable dynamic."
However, he stated that all this is affected by the new - global - environment of high uncertainty and insecurity.
An environment that requires composure, confidence, prudence and determination. In this environment of increased challenges, mainly the huge increase in energy costs, the Greek government is already doing, and will continue to do, its best to reduce the negative consequences.
Christos Staikouras stated:
- The government will continue to subsidize electricity and natural gas bills.
- It will further reduce the Uniform Real Estate Ownership Tax (ENFIA) in order to support the disposable income of the vast majority of citizens, mainly of the lower income ones.
- It will increase, for the second time this year, bravely but realistically, the minimum wage.
- It will proceed in the coming weeks, depending on the budget execution and the potential fiscal space, to an additional support for our weak fellow citizens.
- Finally, it will seek, at European level, new "lines of defence", for additional support to households and businesses.
Meanwhile, the Greek economy will grow faster than the expected average rate of 2% in the next decade because of specific reasons, the Bank of Greece's governor Yannis Stournaras said last week.
Addressing an EIB's event in Athens, the Greek central banker said these reasons were: the unusually high private sector deposits to 15% of GDP in 2021 from 6% on average in the five years before the pandemic.
A second reason is that Greece will receive around 30.5 billion euros from the NextGeneration EU fund focusing on high added value projects boosting growth.
This will growth will be in saving energy, green energy transition, digital transformation, employment, social cohesion and private investments.
The use of these funds will boost the country's real GDP by 7% by 2026.
In addition, Greece will receive another 40 billion euros from structural funds in the coming years and it is expected to attract higher foreign direct and indirect investments.
A third reason, he said, was the increased ability of the banking system to fund sustainable investment plans.
"The Greek economy, in the midst of an adverse environment, recovered strongly in 2021 covering almost all the losses of 2020," stated Minister of Finance Christos Staikouras and Development Minister Adonis Georgiadis in an joint statement last week.
They underlined, however, that "this is clouded by the new international environment of high uncertainty and insecurity that eats up the citizens' disposable income and significantly burdens households."
For this reason, the two ministers said:
"Citizens and the state are called upon work with full sense of the above challenges in order for the present strong recovery to pass the baton to a high, sustainable and socially equitable growth in the interests of all and primarily the younger generation."