The European Investment Bank announced a loan of 2.5 billion euros to Greece in 2023 to support projects related to economic and social cohesion.
The International Monetary Fund stated in a statement that another loan of 143 million euros was directed to the country this year to enhance its efforts in research and development, higher education, and research centers across Greece.
The bank noted that the loans focused on sectors providing job opportunities and training for young researchers, preventing “brain drain,” and enhancing economic, social, and regional cohesion within the European Union in line with the objectives of the European region. Additionally, the loans aim to improve the country’s competitiveness and the quality of life for its citizens.
The European Commission has been closely monitoring Greece’s economic situation through enhanced surveillance reports since Greece’s commitment at the Eurogroup meeting on June 22, 2018. These reports evaluate Greece’s progress in implementing policy commitments made upon its exit from the financial assistance program in June 2018. The surveillance is part of ongoing efforts to ensure the sustainability of Greek debt and the continuation of key reforms under the ESM program.
A decade after the financial crisis, Greece’s economy has shown signs of recovery, driven in part by a surge in tourism. This sector has contributed to a boom in various industries, from construction to services, signaling a turnaround from the economic downturn Greece faced. The New York Times’ chief Europe business correspondent, Liz Alderman, noted that Greece is currently experiencing an economic boom, indicating a significant improvement from the past years of austerity and financial instability.
However, the economic rebound in Greece is expected to slow down in the upcoming year due to the impact of soaring energy costs and inflation, which are anticipated to curb domestic demand and exports. According to Greece’s 2023 draft budget, the country’s economic output is projected to grow by 2.1% next year, a decrease from this year’s 5.3%. The draft budget also forecasts a primary surplus of 0.7% of GDP for 2023, down from a 1.7% budget deficit in 2022. Despite these challenges, the resilience of public revenues and fiscal restraint are expected to support the achievement of the primary surplus target. The Greek government remains optimistic about the country’s economic performance, buoyed by strong tourism revenues and a surge in investments.
