While drought and heat have affected all of the Mediterranean, Sicily has been the hardest hit. Food production could drop by up to 70%. [AP]
Experts believe that the Greek economy will experience slower growth than initially anticipated, affecting projections for inflation and interest rates.
Eurobank analyst Tassos Anastasatos predicts a growth rate of no more than 2% in 2024, significantly lower than the government’s 2.5% forecast in April. The Bank of Greece already forecasted 2.2% growth in its June report for the year.
Despite a challenging economic landscape in the eurozone, there is hope for a growth acceleration to 2.4% in 2025 and 2026. However, reaching the sought-after 3% annual growth seems unlikely, delaying convergence with the EU average.
Governor Yannis Stournaras expects the ECB to implement rate cuts due to weakening growth, potentially requiring further stimulus to boost inflation. Eurobank highlights that consumer spending and tourism will drive growth, with ongoing monetary policies influencing the economy.
\
[ad_2]
Source link
