Maintaining strong tourism demand and achieving higher travel-related revenues are crucial for the Greek economy in 2023, said the latest data released by Alpha Bank.
According to the report which examines the challenges, risks, and opportunities for the Greek economy in 2023, the global energy crisis and high inflation are expected to be the greatest threats to growth.
Critical, particularly for Greece which is highly reliant on tourism, is ensuring demand for travel and relevant services this year. Alpha Bank analysts note that this will depend on the buying power of both Greek and foreign travelers which however is expected to decrease affected by the global instability.
Indicatively, European travelers account for 80 percent of all arrivals to Greece. With dwindling purchasing power, European tourists will consume less impacting demand for travel services, the report said.
In 2023, Alpha Bank analysts are forecasting investments and FDI to be the driving force of the Greek economy as well as the effective use of RRF and other EU funds and the timely completion of projects. A “visible change” of Greece’s economic growth model, Alpha Bank says, cannot be expected before 2026 and only after taking into account the number and nature of investments to be implemented.
Other key challenges forecast for this year, according to the Alpha Bank report, include geopolitical developments and imminent inflationary pressures as a result of the Russia-Ukraine war, private consumption and export activity, monetary policy and the rise of key interest rates, and lastly, crisis resilience and fiscal stability which will be key if Greece wishes to achieve investment grade.