A
ccording to the latest available data, the
Greek economy exhibited surprisingly
strong performance during 2016: accord-
ing to official forecasts, Greek GDP was expected
to shrink by 0.3% – eventually, it grew by 0.3%.
For 2017, international institutions (i.e. European
Commission) forecast a growth rate of more than
2.5%, while in the medium term the Greek econ-
omy appears set to achieve an average growth
rate close to 3%.
It is rather important that the main growth drivers
are private investment and exports. There is also
an encouraging continuous decline of the unem-
ployment rate, which on November was at its low-
est level since the spring of 2012.
An important precondition for this recovery was to
create an environment of credibility and stability.
In order to achieve this, the Greek government
reached an agreement, after painstaking negotia-
tions with its international lenders, on a new
adjustment programme, securing the country’s
fiscal position, the stability of the financial system,
and the sustainability of the debt in the short and
near term. The implementation of the programme
has been relatively smooth, and more than two
thirds of the agreed reforms have already been
adopted.
Building on that ground, our government focuses
on growth-promoting policies, funded through fis-
cal tools (new Investment Law, European
Cohesion Funds), as well as domestic and for-
eign private investments. We are also making an
extensive effort to create a business-friendly envi-
ronment without losing track of our principal goal,
inclusive growth. In this context, our government
is determined to shift the reform mix, previously
focused on lowering labour costs, towards
increasing investment on research and innova-
tion, high-added-value product development,
environmental sustainability, and socially just
redistribution.
I would like to focus on particular investment
Trade with Greece
16
Following a prolonged period of economic
crisis, Greece is about to return on
a sustainable growth path.
The Greek economy
exhibited surprisingly
strong performance
during 2016
By George Stathakis,
Minister of Environment and Energy
