The head of the Bank of Greece predicts GDP growth of more than 6% in 2021

Bank of Greece governor Yiannis Sturnaras looked even more optimistic about the future of the Greek economy than the government did in an interview with Politico on Tuesday. Sturnaras estimates that GDP growth in 2021 will exceed 6%.

In fact, he predicted that the country’s GDP at the end of the year will be greater than it was before the outbreak of the pandemic. According to him, in the next 10 years Greece will maintain high growth rates – about 3.5%.

As a result of the above, according to his estimates, the ratio of public debt to GDP will fall to 187% in 2022 from the current 200%.

According to the chairman of the Central Bank, by 2019 Greece managed to reduce public debt to 180% of GDP and reach investment level, but was prevented by a pandemic.

As for the Greek bond issue, the Governor of the Bank of Japan estimates that the European Central Bank (which, according to the report, owns € 30 billion of Greek bonds out of the € 4.4 trillion purchased under various programs it implements) will continue to buy Greek bonds. even after the end of the so-called. “pandemic program” – PEPP.

Sturnaras said the question is not whether Greece will be able to service its public debt, but more about the transfer of monetary policy to the ECB and the central bank’s efforts in Frankfurt to keep the cost of borrowing for states low.

PS Also, Greek ministers are enthusiastic about the economic situation and talk about an “exciting leap” of the economy. Here are just some evil tongues dare to ask them the coordinates of the area where this jump takes place.

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