Greece has rebounded well from the COVID-19 crisis, generating strong employment growth. Increasing investments and exports, government support measures, implementation of the Greece 2.0 Recovery and Resilience Package and the reforms of the past decade have been supporting the economy. However, headwinds from surging energy prices and uncertainty following Russia’s war of aggression against Ukraine have slowed the recovery. Achieving and maintaining modest primary budget surpluses, better targeting energy support measures and maintaining public revenues while further broadening the tax base and improving its efficiency will further enhance Greece’s prospects of achieving an investment-grade sovereign debt rating. Maintaining the reform momentum, completing the restoration of banks’ health and continuing efforts to improve the business climate can ensure that a sustainable recovery continues over the longer term. This would also support Greece in further raising living standards as it adjusts to a changing climate and achieves net zero emissions.
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