In the second quarter of 2024, the Greek economy saw a growth rate of 2.3%, aligning with the government’s forecast for the year. On a quarterly basis, it ranked second in Europe for growth after Poland. As Prime Minister Kyriakos Mitsotakis prepares for the Thessaloniki International Fair, he emphasized the importance of this growth translating into improved jobs, income, and reduced inequalities. However, while consumption and investments are rising, concerns remain over a widening trade deficit due to increased imports compared to exports. Economists highlight the significance of surpassing EU growth rates as a step towards convergence, yet caution about…

Is the purchasing power of Greeks below that of Bulgarians, or slightly below the EU average and on the rise? It all depends on how you frame the question and which data you choose to examine. A recent study by a researcher at the Center of Planning and Economic Research has sparked debate by suggesting that the Greek hourly wage’s purchasing power parity has fallen below Bulgaria’s. This has raised concerns about the government’s economic policies. The study found that real hourly wages in Greece have declined by 23.7%, the largest drop in the EU. Greece has slipped to second…

The government is taking action to utilize empty houses and apartments in order to increase supply and lower property prices. With an estimated 600,000 vacant properties in the country, the government sees this as a pressing issue impacting young households struggling to afford homes. Prime Minister Kyriakos Mitsotakis is set to announce measures to address the housing shortage and crack down on tax evasion during the Thessaloniki International Trade Fair. This includes creating a platform for public access to property history and prices to combat tax evasion. Additionally, there is a lack of data on habitable vacant properties and short-term…

[AMNA] The Greek government is making significant changes to the way benefits are distributed to encourage employment and deter participation in the underground job market. Reforms are underway to simplify legislation, redefine benefit criteria, and adjust benefits based on work experience and wages. Key areas of contention include decoupling unemployment benefits from the minimum wage, considering a person’s work history, and addressing seasonal benefits. Officials are debating whether to increase or decrease seasonal benefits, while also looking to prevent loss of benefits due to minimal extra income. Source Link

Are you aware of the widening economic gap between popular tourist destinations and the rest of the country? Recent data from the Hellenic Statistical Authority sheds light on this issue, revealing significant disparities in turnover from accommodation and catering. In 2023, Mykonos, a small island with a local population of 10,704, generated €504 million in turnover, while the region of Eastern Macedonia and Thrace, with a much larger population, only reached €470 million. The differences are even more pronounced when comparing Santorini’s €743.8 million turnover to Western Macedonia’s €140 million. The Ionian islands, particularly Corfu, accounted for half of the…

A US F-35 fighter jet performs during the opening day of the Dubai Air Show, United Arab Emirates, on November 13, 2023. Greece formally approved an offer to buy 20 F-35 Joint Strike Fighters from the United States as part of a major defense overhaul, government officials said on Thursday. [AP] Greece’s Ministry of Finance faces challenges with significant spending needs in defense and pensions, limiting flexibility in other areas. The European Commission mandates strict limits on spending increases, aligning with Greece’s aim for primary budget surpluses. Greece aims to reduce debt while embarking on defense procurement, including new frigates…

Despite higher revenue, increased spending needs mean that there is a shortfall in the budget estimated at €400 million, data concerning budget implementation show. Revenue during the first half of 2024 exceeded the budget target by €1.258 billion, but after accounting for various spending needs, the actual excess was only slightly over €600 million. The shortfall includes extra spending on pensions, compensation for flood victims, child subsidies, and more. This shortfall prompted the government to be stricter in extending the tax filing deadline. The Finance Ministry considers this shortfall a challenge in combating tax evasion and unfair tax competition from…

Dozens of messages have been sent to the Finance Ministry asking for a change in terms of the existing debt payment plans, which cannot be ruled out after the election, with the aim of getting more people to join the new arrangement of 36 to 72 installments. The European Commission is negotiating a new medium-term fiscal plan that will impose strict spending increase limits from 2025-2028, affecting the government’s ability to provide handouts and cater to specific voter constituencies like in previous years. The Commission’s proposed spending targets are 3% in 2025, 3.1%-3.2% in 2026 and 2027, and 3% in…

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…

[Shutterstock] The Ministry of National Economy and Finance is introducing tax relief measures to encourage partnerships between larger companies and startups in the research and technology sector. The proposed changes aim to boost cooperation and innovation among businesses. The draft bill includes tax exemptions for patents and incentives for investments in startups by venture capitalists and angel investors. It also provides financial tools to support small and medium-sized enterprises looking to merge. The focus is on fostering research and technology products developed by startups. By involving larger companies and investors, the goal is to enhance market performance. This initiative aims…