Greek Economy – Greek Homes http://greekhomes.info/ Tue, 16 Aug 2022 15:59:04 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 http://greekhomes.info/wp-content/uploads/2021/04/default.png Greek Economy – Greek Homes http://greekhomes.info/ 32 32 Tax revenues higher than expected in January-July 2022 http://greekhomes.info/tax-revenues-higher-than-expected-in-january-july-2022/ Tue, 16 Aug 2022 15:59:04 +0000 http://greekhomes.info/tax-revenues-higher-than-expected-in-january-july-2022/ ATHENS — Tax revenue from January to July 2022 was well above target, according to provisional state budget execution data announced by the Ministry of Finance on Tuesday. Specifically, the target was exceeded by 5.1 billion euros, with total tax revenue during this period amounting to 31.094 billion euros, an increase of 19.9% ​​compared to […]]]>

ATHENS — Tax revenue from January to July 2022 was well above target, according to provisional state budget execution data announced by the Ministry of Finance on Tuesday.

Specifically, the target was exceeded by 5.1 billion euros, with total tax revenue during this period amounting to 31.094 billion euros, an increase of 19.9% ​​compared to the previous year. objective included in the introductory report of the 2022 budget.

Exceeding the revenue target for July was also particularly significant. Specifically, revenue increased by €1.582 billion to a total of €6.421 billion, with an increase of 32.7% over target.

Commenting on this positive development in the course of income, the Alternate Minister of Finance, Theodoros Skylakakis, spoke of the resilience shown by the Greek economy despite enormous external pressures.

“The good performance of public revenues continued in July. It is closely linked to the resistance shown by the Greek economy in the face of the enormous external pressures it has faced in recent years. Particularly significant is the massive return of almost a third of the repayable advance by small and medium-sized enterprises… This massive return proves that something has begun to change in the business model of small and medium-sized enterprises.

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Southern European economies have diverged – POLITICO http://greekhomes.info/southern-european-economies-have-diverged-politico/ Mon, 15 Aug 2022 02:01:11 +0000 http://greekhomes.info/southern-european-economies-have-diverged-politico/ Carla Subirana Artús is an economist who has worked as policy analyst for the Bank of England and Europe research analyst for Economist Intelligence. If the euro zone were a school, Portugal, Italy, Greece and Spain would be the lazy ones. The four countries, branded with the ugly acronym PIGS, are talking loud, enjoying a […]]]>

Carla Subirana Artús is an economist who has worked as policy analyst for the Bank of England and Europe research analyst for Economist Intelligence.

If the euro zone were a school, Portugal, Italy, Greece and Spain would be the lazy ones. The four countries, branded with the ugly acronym PIGS, are talking loud, enjoying a slow life under the sun, over-indebted and in need of reform – or so the cliché goes.

Yet take a closer look and you’ll see that some of these previously unruly students have since become unlikely star students.

Although Italy and Greece remain economic laggards, Spain and Portugal’s growth trajectory has become more robust and compelling since the sovereign debt crises of 2012 – a change that has become visible with the end of the an era of ultra-loose monetary policy. And much of the credit for this split between the Iberian Peninsula and Italy and Greece goes to the structural reforms that Spain and Portugal have introduced over the past decade. But still, the euro zone is not crisis-proof.

A recent example of the divergence between southern European economies and their respective approach to reform was seen when the European Central Bank (ECB) promised to end its bond-buying program in June. While Italy and Greece’s 10-year sovereign bond yields soared, Portugal and Spain’s borrowing costs remained closer to those of the Netherlands, seen as a student. model by the leaders of the European Union.

Over the past decade, Italy’s labor reforms have been tentative and the country has only partially resolved its banks’ bad debts, while Spain has addressed these issues much more decisively. As a result, Spain’s GDP per capita in terms of purchasing power, supported by an increase in total factor productivity – or the efficiency with which an economy uses its productive inputs – exceeded that of Italy. in 2017.

The country has since become one of Europe’s largest automakers and its exports have diversified beyond tourism into chemicals, pharmaceuticals, machinery and professional services.

Investors are now looking at the country in a different light, leading to lower borrowing costs for households and businesses. While spreads on the country’s credit default swaps – which are insurance-like derivatives that pay in the event of default – were identical to those in Italy until 2014, they have since moved closer to those of Italy. France.

Portugal, meanwhile, also had a promising decade. Since 2014, its economy has grown on average three times faster than that of Greece, where output remains nearly a quarter below its 2007 level. And boosting growth, while implementing costly reforms and by meeting strict budget targets demanded by EU officials, António Costa, Portugal’s socialist prime minister since 2015, has become Brussels’ favorite student.

In contrast, Syriza, the left-wing Greek party that ruled the country from 2015 to 2019, was the class rebel. The government backed down on reforms as the national debt remained the largest in the eurozone, bad bank loans piled up and tax revenues continued to rest on too narrow a base, demanding high rates that deterred hiring.

Despite its progress, however, any chanting about the success of the Iberian Peninsula still needs to be tempered.

For example, Portugal’s fiscal prudence came at a cost. Public investment was the lowest in the EU in 2020 and 2021, and the country’s public debt – the highest in the eurozone after Greece and Italy – puts the wider economy at risk of be affected by higher public borrowing costs. In addition, wages are low by Western European standards, which sends many Portuguese abroad for work.

Across the border, the Spanish government, made up of socialists and far-left group Unidas Podemos (United We Can), has offered no creative solutions to fix the country’s unsustainable pension system and the rate neither has skyrocketing youth unemployment since 2019. And with an ugly election in which no party is likely to win a majority, moderates are now eyeing Vox warily – a relatively new hard-right outfit, drawing worrying support in the polls.

Meanwhile, Greece has been busy doing its homework to join the club of successful “turnaround” stories in the Eurozone periphery. The government of Kyriakos Mitsotakis, Greece’s centre-right prime minister since 2019, has managed to polish its image among tourists and investors, attracting record foreign investment last year.

Italian growth, however, will most likely continue to disappoint, as the rare stability brought to its policy by Prime Minister Mario Draghi has now come to an end.

Political stability is important – and not just for Italian families. ECB officials fear that if the infamous ‘catastrophic loop’, which ties the solvency of banks to that of their host countries, were to hit Italy and threaten to trigger a debt crisis, monetary union would begin to look flimsy.

And while most European banks have reduced their home country exposures since the 2012 sovereign debt crisis, Italian banks remain just as exposed to their government debt as they were a decade ago, the link between banks and sovereigns being particularly strong.

So, as political unrest in Italy escalates and investors begin to demand higher yields to hold Italian debt, the country’s banks will inevitably suffer. There are already signs that Italian banks are headed for trouble: Year-to-date yields from the country’s biggest lender – a measure of investment performance – have fallen 24% since February.

And now, plagued by sluggish investment, meager reforms and once again political instability, Italy is set to remain the eurozone’s struggling student for the foreseeable future.

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Greek unemployment rate at 12.1% in June – Greek City Times http://greekhomes.info/greek-unemployment-rate-at-12-1-in-june-greek-city-times/ Fri, 12 Aug 2022 14:12:41 +0000 http://greekhomes.info/greek-unemployment-rate-at-12-1-in-june-greek-city-times/ The Greek unemployment rate fell to 12.1% of the working population in June, from 12.5% ​​in May and 15% in June 2021, the Hellenic Statistical Authority announced on Wednesday. Specifically, the statistics department said the number of unemployed stood at 572,109, down 18.6% from June 2021 and down 2.9% from May 2022. unemployment among women […]]]>

The Greek unemployment rate fell to 12.1% of the working population in June, from 12.5% ​​in May and 15% in June 2021, the Hellenic Statistical Authority announced on Wednesday.

Specifically, the statistics department said the number of unemployed stood at 572,109, down 18.6% from June 2021 and down 2.9% from May 2022. unemployment among women was 15.9% (19% in 2021) and among men 9%. (11.8%).

The unemployment rate in the 15-24 age group fell to 27.4% in June from 31.7% in June 2021 and in the 25-74 age group it fell to 11.3 % against 14.1%. The number of people in employment stood at 4,148,431, up 3.9% compared to June 2021.

The European Commission will not extend Greece’s enhanced surveillance once it expires on August 20, it said on Wednesday.

In a statement, the Commission said that “following exchanges with the Greek authorities, including during the Eurogroup meeting of 16 June, the Commission recognizes that Greece has delivered on the essentials of the political commitments made towards the Eurogroup on its exit from the economic adjustment”. program in June 2018, and that it managed to effectively implement the reforms, even in the difficult circumstances created by the Covid-19 pandemic and, more recently, by Russia’s military aggression against Ukraine.

He also noted that thanks to Greece’s efforts, “the resilience of the Greek economy has significantly improved and the risks of ripple effects on the Eurozone economy have significantly diminished. Therefore, keeping Greece under enhanced surveillance is no longer justified.

The European Commission added that monitoring of the country’s economic, fiscal and financial situation will continue as part of post-programme surveillance (PPS) and the European Semester.

Monitoring of ongoing reform commitments will be undertaken in the context of the first PPS report to be published in November 2022, which could serve as the basis for a Eurogroup decision on the final tranche of debt relief measures agreed in June 2018.

Major reforms and investments are also planned in the Greek recovery and resilience plan. The Commission welcomes Greece’s achievements and its commitment to pursue reforms beyond the end of enhanced surveillance.

The Executive Vice-President for an Economy that Works for People, Valdis Dombrovskis, and the Commissioner for the Economy, Paolo Gentiloni, have already informed the Greek authorities, and their letter to Greek Finance Minister Christos Staikouras and his response have been published online.

The measures to be taken for the last quarter of the year are listed and quantified, Finance Minister Christos Staikouras said on Friday in an interview with Skai TV.

“We have before us”, he added, “the abolition of the solidarity levy (in 2023 for civil servants and pensioners, at a cost of 450 million euros), the heating allowance, etc. .”

“According to the data, there will be fiscal space in September, which was created in July-August,” Staikouras pointed out.

However, he stressed that July’s large revenue surplus does not mean that everything is permanent.

“So we are waiting for ELSTAT figures for second quarter GDP, the evolution of income and tourism receipts,” he said, adding that there is also uncertainty on natural gas and fuel prices. . “Everything will depend on the picture of the real economy in September,” he concluded.

READ MORE: Turkish Minister Çavuşoğlu: Greece clearly violates international law with islands.

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EU to end review of Greek economy after 12 years of turmoil http://greekhomes.info/eu-to-end-review-of-greek-economy-after-12-years-of-turmoil/ Wed, 10 Aug 2022 17:08:50 +0000 http://greekhomes.info/eu-to-end-review-of-greek-economy-after-12-years-of-turmoil/ The European Commission is to end its scrutiny of Greece’s economy, marking the end of a debt crisis triggered by the global financial turmoil of 2008 that nearly pushed the country out of the eurozone. In a letter to Greece’s Finance Minister Christos Staikouras on Wednesday, EU Economics Commissioner Paolo Gentiloni said Greece had “honoured […]]]>

The European Commission is to end its scrutiny of Greece’s economy, marking the end of a debt crisis triggered by the global financial turmoil of 2008 that nearly pushed the country out of the eurozone.

In a letter to Greece’s Finance Minister Christos Staikouras on Wednesday, EU Economics Commissioner Paolo Gentiloni said Greece had “honoured the essential political commitments” made to the Eurogroup by 19 eurozone member states. euro and “achieved an effective implementation of reforms” despite the impact of Covid-19 and the war in Ukraine.

Staikouras said on Twitter that the announcement “marks the achievement of a major national goal for Greece”.

Following the financial crash of 2008, Greece was plunged into a debt crisis that led to bailouts by the EU and IMF from 2010. In the decade that followed, the economy of the country contracted by a quarter and the disposable income of Greek citizens fell by a third. on the back of austerity policies imposed by the so-called “troika” of institutions which included the commission, the IMF and the European Central Bank.

Thousands of young Greeks left the country in search of jobs as unemployment in the country peaked at 27.8% in 2013, while the government was forced to make drastic cuts to its welfare system. retirement and public service in exchange for financial assistance.

The commission, which monitors the budgets of the 27 member states, has overseen reforms to the Greek economy since the bailout program was launched.

The tough conditions of the bailout, largely dictated by Germany, nearly pushed Greece out of the euro zone in 2015 when then-Prime Minister Alexis Tsipras imposed the conditions on the Greek people during a Referendum. Voters rejected the terms of the aid package, but Tsipras implemented the reforms regardless.

The announcement of the end of the strict surveillance program comes as the ECB puts in place mechanisms to prevent a second collapse of the eurozone economy.

Last month, the ECB raised interest rates for the first time since 2011 and focused the reinvestment of maturing bonds on southern EU countries, including Greece.

Following the latest trip by EU officials to Athens in April, the committee noted that economic growth is expected to reach 3.5% in 2022 and 3.1% in 2023 despite continued pandemic-related uncertainty and rising energy costs.

He also said there was a “positive surprise” in the government’s primary deficit – the difference between government revenue and expenditure excluding interest payments – which was 5.5% of gross domestic product in 2021, i.e. 2.1 percentage points less than expected.

The so-called “economic adjustment programme” ended in June 2018, but Brussels has been monitoring Greece’s finances ever since.

The commission said in a statement that the risk “of ripple effects on the euro area economy has diminished significantly” and that more detailed monitoring was “no longer warranted”.

A final tranche of debt relief is due in November if Greece meets the conditions for a “post-programme surveillance” report.

In a letter responding to Gentiloni, Staikouras said Greece had implemented reforms in six key areas – fiscal policies, social protection, financial stability, labor markets, privatization and public administration – which had “put in place a flat -solid form for Greece to achieve sustainable and sustainable goals”. long-term inclusive growth”.

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Greece ready to welcome 1 million tourists a week http://greekhomes.info/greece-ready-to-welcome-1-million-tourists-a-week/ Mon, 08 Aug 2022 12:57:52 +0000 http://greekhomes.info/greece-ready-to-welcome-1-million-tourists-a-week/ Greece expected to welcome 1 million travelers a week, tourism minister says Vassilis Kikilias in a recent interview with ANA-MPA, highlighting the importance of industry as a key driver of the Greek economy, especially in view of the coming winter. “This year, the tourism sector has demonstrated its key role; not only to strengthen the […]]]>

Greece expected to welcome 1 million travelers a week, tourism minister says Vassilis Kikilias in a recent interview with ANA-MPA, highlighting the importance of industry as a key driver of the Greek economy, especially in view of the coming winter.

This year, the tourism sector has demonstrated its key role; not only to strengthen the national economy, but also to offer important support in very difficult circumstances,” Kikilias said.

He attributed this year’s “unprecedented performance” to the hard work of the ministry and the top-notch services of Greek travel and tourism players.

“Greece has excellent entrepreneurs who, with effort, ingenuity and passion, offer travelers high-level services, which improve the Greek tourist product,” he said.

According to Kikilias, Greece will expect around 1 million passengers per week at the start of the July school year, which has seen more than 900,000 arrivals each week.

Kikilias said the South Aegean region had already surpassed its pre-pandemic levels of 2019 with an increase of 20% in July compared to 2019, 17,500 international flights and more than 3 million visitors.

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Greek Tourism Minister Vassilis Kikilias.

“With teamwork, focused planning and timely interventions to meet this year’s challenges, some destinations have managed to approach or even exceed 2019 levels” despite the Russian-Ukrainian war, the energy crisis and inflationary pressures, Kikilias said.

The Minister confirmed the “dynamic return” of the UK, German and Scandinavian markets and the US market, whose arrivals in June increased by 50% compared to 2019 thanks in large part to the availability of more direct flights.

In addition, the Austrian market grew by 32% and Israel by 24%. “Greece is this year the number 1 destination for travelers from France, Israel, very high in the preferences of tourists from the Balkans, and in the first 3 positions in Germany and Scandinavia”, he said. declared.

Among the lesser-known destinations being promoted this year are Kastoria, Limnos and Nafpaktos, Kikilias said, adding that Crete, Rhodes and Kos were being promoted as ideal destinations for senior visitors in winter.Limnos, Greece.  Photo source: Visit Greece / K. Vergas

Kikilias concluded that one of the department’s biggest bets was to extend the tourist season beyond the traditional summer months. “We have no indications but evidence that the tourist season has already extended and, yes, will extend further,” he said.

“This year the season started earlier – from early March, with 63 direct flights per week from the US…cruise ship arrivals started early and have now reached 10 months of operations and we are strive for 12 months. And the number of visitors to the Acropolis has reached 2019 levels.”


Follow GTP headlines on Google News to keep up to date with all the latest news on tourism and travel in Greece.

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Kathimerini: Germany annoys Ankara http://greekhomes.info/kathimerini-germany-annoys-ankara/ Sat, 06 Aug 2022 09:18:12 +0000 http://greekhomes.info/kathimerini-germany-annoys-ankara/ Tensions in Greek-Turkish relations remain high, creating an atmosphere that justifies anything but complacency. Turkey again reacted negatively to another major Western power expressing its support for Greece. This time, Ankara is angered by Germany, whose foreign minister criticized Ankara, among others, for challenging the sovereignty of Greek islands near its coastline, Kathimerini reported. German […]]]>

Tensions in Greek-Turkish relations remain high, creating an atmosphere that justifies anything but complacency. Turkey again reacted negatively to another major Western power expressing its support for Greece. This time, Ankara is angered by Germany, whose foreign minister criticized Ankara, among others, for challenging the sovereignty of Greek islands near its coastline, Kathimerini reported.

German Foreign Minister Annalena Baerbock, who visited Greece last week and then Turkey, said many issues of international law are complex, but some are very simple. The Greek islands – Lesvos, Chios, Rhodes and many others – are Greek territory, and no one has the right to ask questions about it.

It did so at a time when, in a new strategy bordering on the absurd, Turkish President Recep Tayyip Erdogan and other Turkish officials began to question the sovereignty of the Greek islands of eastern Aegean Sea.

Turkish Foreign Minister Mevlut Cavusoglu even accused Germany of not being an honest mediator and always on the side of Athens. This is not true, and not only with regard to bilateral relations. As for immigration, the head of German diplomacy directly criticized Athens during her visit.

Berlin, like Washington and Paris, does not “take sides” in the complex web of Greek-Turkish relations. He strongly advocates dialogue between the two countries and the peaceful resolution of any existing disputes. He’s just trying to be rational, and so when it comes to irrational claims against Greek sovereignty, he ends up backing up the obvious.

Ankara continues to follow a slippery path that can only harm Turkey. Instead, he must accept the fact that Greece is a member of the EU, realize that threatening rhetoric, provocative actions and exaggerations of all kinds backfire, and understand that revisionism is a policy dangerous that should not be tolerated, especially in Europe.

If Turkey changes its rhetoric, stops military overflights of the Greek islands, and its National Assembly rescinds the threat of war against Greece, the atmosphere will be conducive to a normal, meaningful, and potentially effective dialogue between neighbors.

This behavior will benefit its economy, increase its regional role and also facilitate the acquisition of advanced military equipment, whether fighter jets or submarines, notes the author.

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Greek Secret Service Admits Wiretapping of Journalist http://greekhomes.info/greek-secret-service-admits-wiretapping-of-journalist/ Thu, 04 Aug 2022 11:00:17 +0000 http://greekhomes.info/greek-secret-service-admits-wiretapping-of-journalist/ ANKARA, Aug 4 (UrduPoint / Pakistan Point News – Aug 4, 2022): The Greek National Intelligence Service (EYP) has confessed to bugging a journalist working for CNN Greece, local media reported on Thursday. Quoting Reuters, I Avgi, a daily published in Athens, said Panagiotis Kontoleon, the head of the EYP, told parliament’s Institutions and Transparency […]]]>

ANKARA, Aug 4 (UrduPoint / Pakistan Point News – Aug 4, 2022): The Greek National Intelligence Service (EYP) has confessed to bugging a journalist working for CNN Greece, local media reported on Thursday.

Quoting Reuters, I Avgi, a daily published in Athens, said Panagiotis Kontoleon, the head of the EYP, told parliament’s Institutions and Transparency Committee last week that his agency was spying on journalist Thanasis Koukakis.

The committee’s closed hearing came after Nikos Androulakis, leader of the opposition socialist PASOK party, complained to senior prosecutors about an attempt to hack into his mobile phone with tracking software.

Government spokesman Giannis Oikonomou claimed that Greek authorities do not use the spyware allegedly used in Koukakis’ taps and do not do business with the companies that sell it.

A victim of wiretapping, Koukakis told the media that he did not know how he posed a threat to national security as a journalist covering economic policy and the banking system.

According to the daily, Koukakis’ case was discovered in April and the main opposition party SYRIZA-PS called for the allegations to be examined by a parliamentary committee.

His request was then denied, the report says, adding that it was only after Androulakis filed his complaint with prosecutors in late July that the request by SYRIZA-PS and PASOK-KINAL to convene the committee was accepted and a hearing followed.

According to the I Avgi report, SYRIZA-PS has officially asked Prime Minister Kyriakos Mitsotakis to shed light on the two cases, which he says involve the use of the Predator surveillance software, citing important issues for democracy and civil rights.

Meanwhile, Dimitris Papadimoulis, a senior SYRIZA-PS lawmaker, has argued that the government is behaving suspiciously as if trying to hide a guilty secret.

“The issue has been widely highlighted in European media, while at the same time it has been shockingly downplayed from the first moment, in pro-government Greek media,” he said.

Likewise, the e-tetRadio outlet drew attention to the fact that the major Greek media were trying to downplay the extent of the wiretapping scandal.

What is big news for Reuters, is not even worth mentioning for the majority of Greek media, he said, adding: “As if it were reasonable and acceptable in a democracy that services secrets follow a journalist investigating scandals”. outlet argued that Mitsotakis, as political head of the EYP, bears full political responsibility for the scandal. He needs to prove he hasn’t turned the country into a “huge bug”, he said.

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Celebrities and tourists flock to Greece. But a harsh winter is not far away | Helen Smith http://greekhomes.info/celebrities-and-tourists-flock-to-greece-but-a-harsh-winter-is-not-far-away-helen-smith/ Sun, 31 Jul 2022 15:15:00 +0000 http://greekhomes.info/celebrities-and-tourists-flock-to-greece-but-a-harsh-winter-is-not-far-away-helen-smith/ EEarlier this month, Elon Musk flew to Mykonos, shelling out €7,000 to enjoy the pleasures of a golden speedboat for a few hours. In nearby Paros, Roger Federer bathed in the rays with his family away from the tennis court while Magic Johnson raved about his “life-changing experience” at the Acropolis and Nicole Kidman thanked […]]]>

EEarlier this month, Elon Musk flew to Mykonos, shelling out €7,000 to enjoy the pleasures of a golden speedboat for a few hours. In nearby Paros, Roger Federer bathed in the rays with his family away from the tennis court while Magic Johnson raved about his “life-changing experience” at the Acropolis and Nicole Kidman thanked “the beautiful Greece” on Instagram.

Greece is having a great summer. Just when tourism officials think it can’t get better, it does. Athens prepares to welcome a million visitors this week; record numbers are flocking to the islands – despite the jellyfish – and there are plenty of celebrities on vacation.

“This year, the whole world is voting [for] Greece,” the country’s tourism minister, Vassilis Kikilias, told the Observer. “We have a war in Europe, a pandemic that is still here, an energy crisis, global uncertainty, inflation, tensions with Turkey and even jellyfish and yet they are still coming. Arrivals on popular islands are up 20%.

In the Greek capital, it can’t get much better either: after the mass return of coronavirus vacationers from the Lost Years, teeming in the streets of the city’s historic center and crowding into archaeological sites.

The figures already point to a tourist season that will surpass the country’s all-time high of attracting 33.1 million visitors – more than three times the total population of Greece – in 2019.

Elon Musk, who flew to Mykonos, was one of many celebrities to visit Greece. Photography: Lily Lawrence/Getty Images

For Costas Lavidas, who runs the kebab shop that made his grandfather famous in the 1950s, vacationers are a lifeline. “What is certain is that if it hadn’t been for the tourists, I wouldn’t have the business that I have,” he said, placing sticks of marinated pork on the grill behind him as queues formed outside the restaurant in Syntagma Square in Athens. “Thank God they are here! »

It is not just the resort islands that are reporting a significant increase in arrivals. Demand for cruises has also exploded, with more than 700 liners expected to dock at Greek ports in 2022. “There was a 280% increase in the port of Thessaloniki and 130% in Piraeus,” Kikilias said.

Flights to Athens International Airport – among the few in Europe not marred by delays this summer – jumped 20%. The push is such that if there is any problem, it is finding enough workers to staff the industry. In recent months, resorts and hotels have recruited Ukrainian refugees to help fill positions.

“Since March 2, there have been nine direct flights from the United States to Athens each day. It was a game-changer,” Kikilias added. “About 500,000 Americans are expected to come by November. They are big spenders and with the dollar-to-euro exchange rate, they can spend even more.

Greece made €18.2 billion in tourism revenue in 2019 and just over €10 billion last year when Greece opened its borders in May. Speaking to CNN last Thursday, Greek Prime Minister Kyriakos Mitsotakis said he thought officials would be “pleasantly surprised” once they “did the math” at the end of the season.

“Greece is doing particularly well this summer,” he told the American channel. “We have put a lot of effort into improving our tourism product, ensuring that all new investments in tourism are sustainable. We have seen this year the tourist season start very early and I expect it to end very late.

In an economy so dependent on the sector – tourism accounts for 25% of Greece’s economic output and one in five jobs – the travel bug that seems to have taken hold post-Covid has had the effect of being more than just a psychological balm.

Far from the pink figures, the Greeks know that they are in reserve for a difficult winter. Inflation hit 11.5% – a 28-year high – this month, according to data released by Eurostat on Friday. In a country where the minimum wage is €713 a month and an estimated 43% of the working population cannot afford holidays, prices have soared.

“There are huge numbers of people in this country working for less than €1,000 a month,” said Nikos Vettas, an economics academic who heads the influential think tank IOBE.

“Greek incomes are below average wages in the EU, not least because of the years of crisis,” he added, referring to harsh austerity that was the price of international bailouts to stave off the nation’s bankruptcy. in debt. Thus, the price spike for many households had come as a shock.

“We’re a still recovering economy, an economy that’s down 25%,” Vettas said. “Although it is now growing faster than many others in Europe thanks in part to tourism, the energy crisis and war in Ukraine are huge threats that cannot be ignored.”

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Bank of Greece: Economic Bulletin, issue 55 http://greekhomes.info/bank-of-greece-economic-bulletin-issue-55/ Fri, 29 Jul 2022 10:28:23 +0000 http://greekhomes.info/bank-of-greece-economic-bulletin-issue-55/ 07/29/2022 – Press releases Today the Bank of Greece published the latest issue of its Economic Bulletin (No. 55 / July 2022). Articles published in the Economic Bulletin reflect the opinions of the authors and not necessarily those of the Bank of Greece. Issue 55 contains the following four articles: Sofia Anyfantaki, Yannis Caloghirou, Konstantinos […]]]>

07/29/2022 – Press releases

Today the Bank of Greece published the latest issue of its Economic Bulletin (No. 55 / July 2022).

Articles published in the Economic Bulletin reflect the opinions of the authors and not necessarily those of the Bank of Greece.

Issue 55 contains the following four articles:

Sofia Anyfantaki, Yannis Caloghirou, Konstantinos Dellis, Aikaterini Karadimitropoulou and Filippos Petroulakis: “Skills, management practices and technology adoption in Greek manufacturing firms”

So far, the Greek economy has failed to reorient its production structure towards more complex and high value-added activities incorporating knowledge-intensive practices. Greece lacks a systemic dimension of “activating knowledge”. Given the country’s low performance in innovation and knowledge diffusion compared to its EU peers, the article focuses on two specific problems of Greek industry: skills and management practices. Both of these areas are essential conditions for achieving robust productivity growth, in which Greece has been chronically lagging behind its peers. First, the authors offer an in-depth review of skills indicators to identify the scope for action, particularly to address the mismatch. A notable finding is that, using mismatch indicators aggregated from microdata from the recent OECD Survey of Adult Skills which was conducted as part of the Program for the International Assessment of Adult Competencies (PIAAC), they show that Greece has the highest overqualification rate for professional occupations. The study also supports previous findings regarding the negative relationship between skills mismatch and firm productivity. Second, the authors use firm-level data from the World Management Survey (WMS) to review management practices in Greek industry and explore the quality of these practices and their association with productivity. Finally, they use information from a new survey on entrepreneurship, technological developments and regulatory changes, and examine the structural characteristics of Greek firms that innovate and tend to adopt new technologies, with a focus on the role of size, ownership structure, global value chain ownership and human resource practices. The empirical findings of the study provide a valuable contribution to concrete policy proposals aimed at increasing productivity in the Greek manufacturing sector.

Christos Catiforis: “Post-pandemic inflation: Phillips curve, trends, drivers and lessons”

After several years of very low inflation, the global economy in 2021 and 2022 faced a sharp and persistent rise in inflation rates not seen in decades. This article examines the main factors behind the surge in consumer price inflation in advanced economies and possible differences between them. It assesses the relative role of excess demand resulting from the reopening of economies after restrictive COVID-19 measures, global value chain and supply disruptions, rising energy prices, “base effect” and labor market pressures. The author finds that prices were initially pushed higher by the rapid recovery in global demand combined with global supply disruptions, but eventually, especially since the war in Ukraine, energy prices have become the main driver of rising inflation. Differences in the contribution of the core inflation component in advanced economies, in particular between the United States and others, reflect output gaps and labor market tensions, while pressures on Unit labor costs remained subdued almost everywhere. Given that inflation is expected to remain elevated for longer than initially expected, monetary authorities should become more “conservative” again, defending their credibility. Past experience suggests that, with an economic downturn becoming inevitable, the short-term costs of a gradual and orderly normalization of monetary policy for activity and employment are likely to be lower than the potential longer-term costs of a more popular prolonged accommodative policy. Anchoring inflation expectations is not “a free lunch”.

Nikos Ventouris and Georgios Palaiodimos: “Proposals for the reform of EU fiscal rules”

The aim of this document is to contribute to the ongoing debate regarding the reform of the EU fiscal framework, with a particular focus on Greece’s fiscal sustainability. The main policy proposals for EU fiscal rules build on lessons learned from past experience, findings from relevant studies and fiscal sustainability risks faced by Greece and other highly indebted countries in the euro zone. To this end, the authors use the European Fiscal Board compliance monitoring dataset to assess compliance with the existing Stability and Growth Pact framework. In addition, they use the Bank of Greece’s Debt Sustainability Analysis (DSA) model to identify potential fiscal sustainability risks for Greece in the medium to long term, taking into account alternative economic policy scenarios. (including a debt rule scenario). The main conclusions of the document indicate that the revised fiscal framework should focus on the need to improve public debt sustainability as a key priority, setting a debt anchor as a medium-term fiscal objective, with a single operating expense that promotes the countercyclicality of fiscal policy. Current benchmarks could be maintained and supplemented with appropriate flexibility in the rate of debt reduction to deal with heterogeneity across countries and avoid the self-destructive effects of fiscal policy. In the case of Greece, despite the favorable characteristics of public debt, short- and medium-term fiscal policy should focus on accelerating deleveraging. The exposure of Greece’s public debt dynamics to market and interest rate risks is expected to gradually increase as public sector debt is replaced by market financing, thereby changing the structure of public debt and intensifying the need to build fiscal buffers to increase its resilience to future adverse macroeconomic shocks.

Sofia Anyfantaki, Petros Migiakis and Aikaterini Paisiou: “Green finance in Europe: actors and challenges”

Addressing climate change through mitigation and adaptation requires shifts in policies, technologies and consumption behaviors towards a low emissions growth model. These structural and technological changes require appropriate financial solutions, in order to increase the financial flows that support sustainable growth. This paper focuses on the European dimension and examines the role of financial markets in the process of reducing greenhouse gas emissions and promoting climate change mitigation and adaptation. Global green bond markets have grown rapidly in recent years. Based on issue- and issuer-specific data, the authors find that global market activity for project finance in green bond issuance has accelerated in recent years. years, the total amount of bonds issued during the 2019-21 period tripled compared to the 2014-18 period. Moreover, they show that European markets and issuers are leading this development, while private sector entities are increasingly using green bond markets as a source of funding. On the other hand, funding from green bond markets has been directed to a few sectors of the economy, which highlights the need for some policy-related initiatives. The increase in green bond issuance has occurred during a period of accommodative financial conditions, further underscoring the need for policy initiatives to strengthen the supply of incentives to investors for green finance in the landscape. today’s changing financial markets. Improving the credibility, comparability and transparency of ESG ratings and credit rating agency assessments is essential to support sound investment decision-making and risk management, including those of central banks , which are increasingly integrating climate change issues into their operations.

Related information:

Issue 55 also includes summaries of working papers published by the Special Studies Section of the Bank’s Economic Analysis and Research Department between January and July 2022.

Related link:

The full text of issue 55 is available on the Bank of Greece website: Bank of Greece Economic Bulletin, Issue 55.

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Abu Dhabi Stock Exchange leads the region in market value increase http://greekhomes.info/abu-dhabi-stock-exchange-leads-the-region-in-market-value-increase/ Wed, 27 Jul 2022 18:17:12 +0000 http://greekhomes.info/abu-dhabi-stock-exchange-leads-the-region-in-market-value-increase/ KUWAIT: The Clean Fuels Project is one of the largest and most important projects in the history of the Kuwaiti petroleum sector, as it will position Kuwait among the leading exporters of high quality and environmentally friendly products, reported the Kuwaiti News Agency. The project is part of Kuwait’s efforts to become a regional economic […]]]>

KUWAIT: The Clean Fuels Project is one of the largest and most important projects in the history of the Kuwaiti petroleum sector, as it will position Kuwait among the leading exporters of high quality and environmentally friendly products, reported the Kuwaiti News Agency.

The project is part of Kuwait’s efforts to become a regional economic attraction center and represents a historic milestone that will strengthen Kuwait’s position as an influential and competitive state capable of meeting stringent conditions in various global markets, as well as its global position in oil refining. industry by expanding and modernizing the Mina Abdullah and Mina Al-Ahmadi refineries.

In addition to advanced conversion capabilities, the operational excellence, reliability, safety performance and energy efficiency of both refineries have been greatly improved.

Their own products meet American, European and Asian standards, including Euro-4 and Euro-5.

The equipment and technology used in the execution of this massive project was developed by 199 companies from 23 countries.

Deputy CEO for Administrative and Commercial Affairs of Kuwait National Petroleum Co. and Official Spokesperson, Ahed Al-Khurayif, said that due to the global advancement of the petroleum industry and the variables in different environmental requirements local and global, the company implemented the CFP, which helped revamp the product. specifications in line with required global standards.

According to KUNA, the project reflects the company’s overall strategic vision to become one of the most competitive and advanced refining companies in the world and manifests the optimal utilization of the country’s petroleum resources as one of the main objectives. of Kuwait Petroleum Corp.

Al-Khurayif estimates that the CFP’s investments would be KD 4.68 billion (about $15.2 billion), citing the financing process as the largest in the history of Kuwait’s oil industry.

According to the company official, KPC financed 30% of the project’s capital expenditure, while the remaining 70% was financed from foreign sources.

Due to the massive size of the project, it was divided into three main parts, each of which was carried out by a consortium of international companies, Al-Khurayif said.

Following the successful completion of the project, the refining capacity of the Mina Abdullah and Mina Al-Ahmadi refineries increased to 454,000 and 346,000 barrels per day, respectively, according to the official.

The quantity of 800,000 bpd, combined with the planned production capacity of 600,000 bpd from the Al-Zour oil refinery, will bring the total refined oil to 1.4 million bpd, realizing the best value added and the the highest possible revenues from hydrocarbon resources, Al-Khurayif boasted.

One of the main objectives of the project is to increase the conversion capacity of the company’s refineries by converting low quality heavy products into high quality products.

Thanks to products that meet the Euro-4/Euro-5 standards, the environmental impact is significantly reduced due to the significantly lower content of SOx, NOx and other pollutants.

The sulfur content in gasoline, for example, will be reduced from 500 ppm to 10 ppm, and in diesel from 5,000 ppm to 10 ppm, he added.

In addition, KNPC is now ready to produce marine fuel oil containing 0.5 percent sulfur in accordance with the 2020 requirements of the International Maritime Organization, he added.

Al-Khurayif said the CFP is one of the strategic projects that serve Kuwait’s Vision 2035 by providing employment opportunities to Kuwaiti nationals.

Since its inception, the project has created about 800 jobs for Kuwaiti nationals while developing their capacities and skills, he said, adding that internal and external trainings have been organized for about 650 newly recruited employees. Nationals represent at least 30% of the workforce per contract.

Local spending was one of the key aspects of the project, Al-Khurayif said, with its contractors spending a total of KD 1.1 billion in the local market during all phases of execution.

In terms of environmental significance, he said the company’s products meet the strictest global environmental specifications and the project meets the needs of local power plants for clean, low-sulphur fuel, thereby reducing environmental risks. .

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