Greece: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Greece

The 2023 Article IV Consultation highlights that Greece’s economic outlook has improved notably. Growth-friendly fiscal consolidation can further strengthen public debt sustainability while supporting inclusive and green growth. Further tightening in the near term and maintaining a primary surplus in the medium term would help further strengthen public debt sustainability while limiting additional pressure on inflation. The resilience of the financial system should be further strengthened in an environment of higher-for-longer interest rates. The monitoring and management of risks associated with interest rates, liquidity and funding, and credit exposures should be further strengthened. Comprehensive reforms to address structural supply impediments would lift medium-term growth prospects amid a negative demographic outlook. Continued reforms in digitalizing public administration and tackling barriers to more competition would unlock higher private investment and improve productivity. Expeditious implementation of the National Recovery and Resilience Plan would help raise productivity by supporting the green and digital transition, and reskilling and upskilling the labor force. Rationalizing regulations would improve business dynamism and resource allocation. Continued reforms in digitalizing public administration and tackling barriers to more competition would unlock higher private investment and improve productivity.