Stournaras: the key challenges facing the Greek Economy

The Governor of the Bank of Greece added that “maintaining fiscal responsibility, continuing reforms, strengthening innovation, attracting productive investment and safeguarding financial stability constitute the key pillars for achieving higher productivity, faster real convergence with the more advanced European economies, and sustainable prosperity for citizens.”

Referring to the challenges currently facing the Greek economy, the Governor of the Bank of Greece stressed that the economy continues to face structural weaknesses, including low productivity, demographic pressures, skills shortages in the labour market, limited diffusion of innovation, difficulties in accessing affordable housing, and weaknesses in the functioning of public administration and the justice system. At the same time, the still high level of public debt, the persistent current account deficit and the resulting negative international investment position of the country, as well as inflation—which continues to exceed the euro area average—are factors requiring continued vigilance.

Commenting on geopolitical developments, Mr Stournaras noted that energy uncertainty, the increasing fragmentation of international trade, rapid technological advances and the economic impacts of climate change are creating new challenges at a European-wide level.

According to the Governor of the Bank of Greece, addressing these challenges requires the continuation of prudent macroeconomic policies, the preservation of fiscal credibility, the advancement of reforms and the acceleration of investments that enhance productivity and the international competitiveness of the European economy.

He further emphasised the importance of improving the quality of investment, as well as effectively utilising available European funds and attracting private capital. These resources should be directed towards high-productivity sectors that can rapidly expand the economy’s productive capacity, including industry, research and innovation, digital technologies, artificial intelligence, energy infrastructure, the green transition, and outward-looking sectors with high added value.