The Greek economy is facing several domestic challenges that continue to overshadow its prospects. These challenges include demographics, climate change, and a large investment gap with Europe. Spyridoula Tzima, deputy vice president of the DBRS Morningstar rating agency, notes that an escalation of geopolitical tensions could lead to a rise in commodity prices and put upward pressure on prices. This could delay central banks’ decisions on interest rate cuts and require additional fiscal measures.
On the other hand, Maddalena Martini, a senior economist at Allianz, warns that weak global demand will create new challenges for growth in Greece this year. She expects GDP growth to reach only 1%, as the country has been impacted by a slowdown in its top export markets. However, Oxford Economics economist Paolo Grignani is slightly more optimistic, estimating that growth in Greece could reach 1.7% this year. Despite weak eurozone growth, he believes that the Greek economy’s reliance on domestic demand for growth will help drive positive outcomes.
Meanwhile, an anti-Israel billboard with a picture of Iranian missiles has been spotted on a street in Tehran, Iran. The storm clouds are gathering over the Greek economy as it faces domestic challenges such as demographics, climate change, and a large investment gap with Europe. These challenges continue to overshadow its prospects while external geopolitical tensions add uncertainty to the situation
