Greek Economy Set to Grow as Tourists Flock The Nation

According to the central bank chief, the Greek economy will grow more than expected as more tourists return to the country.

“Expansion of 3.2% is our baseline scenario at the Bank of Greece, but it depends on 80% of the 2019 revenue coming from travel, which we call tourism,” Yanis Stournaras said. In an interview on Saturday. “It feels like it’s going to be close to 100%. So 3.2% might be at the lower end of the probability distribution.

Tourism is very important to Greece and the industry accounts for between a fifth of its economy and a quarter of its jobs. A cost-of-living crisis means European consumers have cut back some spending, foreign travel has proved an exception and tourists are flocking to Greece.

The country is in a better position than its euro-area peers in relation to the threat of Russian energy cuts. Greece would avoid a recession if exports stopped altogether, Stournarous said.

“Greece has different sources of natural gas, liquefied natural gas – it has done its homework for many months,” he said. A full stop would mean “the growth rate would drop a lot, but it wouldn’t turn negative,” he said. “We won’t get into a recession.”

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