The Greek Wire - December 2021

The Greek Wire is a monthly newsletter aiming to inform you about key economic and political developments in Greece.

Greek House Davos: Plans for a series of activities and meetings after the postponement of the WEF Annual Meeting

Following the official announcement of the World Economic Forum on the postponement of the Annual Meeting in January due to the rapid spread of the Omicron variant, we would like to inform you that Greek House Davos adapts its activities accordingly and plans a series of activities and meetings in Greece and abroad in the near future.

The Official Presentation of Greek House Davos took place with great success

The Official Presentation of Greek House Davos took place on Wednesday, December 8, at the NJV Athens Plaza Hotel, and was attended by influential representatives of the entrepreneurship and political community and institutional bodies. Among the Speakers were the Minister of Development & Investments of the Hellenic Republic Adonis Georgiadis, the Chair of Greek House Davos Irene Vantaraki, the Chairman of the Council of Competitiveness of Greece Simos Anastasopoulos, the President and CEO of the Hellenic Development Bank Athina Hatzipetrou and the Managing Director of the BlackSummit Financial Group and Member of the International Advisory Council of Greek House Davos John Charalampakis. Greek House Davos “is more than welcome", stressed the Minister of Development and Investments Adonis Georgiadis, who pointed out that "now is the perfect time for promoting the upgraded investment climate of the country".

Industry Turnover Index: Y-Ο-Υ increase of 40.6%

The Hellenic Statistical Authority announced the Overall Turnover Index in Industry (both Domestic and Non-Domestic Market) in October 2021 recorded an increase of

40.6% compared with the corresponding index of October 2020. The Overall Turnover Index in Industry in October 2020 decreased by 13.6% compared with the corresponding index in October 2019 mostly due to the COVID-19 pandemic.

ECB decision well received by markets

The European Central Bank (ECB) sent a “strong signal” by explicitly announcing that it could reinvest proceeds from its PEPP bond-buying scheme in Greek government bonds if the country needs support. The ECB President Christine Lagarde told reporters that “Greece has improved its ratings but does not have the rating that makes it eligible under the APP, and for this reason we have decided to have a specific reference to Greece and the Hellenic Bank. That’s a really strong signal, and it’s rare that we have a country-specific clause. This could include purchasing bonds issued by the Hellenic Republic over and above rollovers of redemptions in order to avoid an interruption of purchases in that jurisdiction which could impair the transmission of monetary policy to the Greek economy while it is still recovering from the fallout of the pandemic” That practically means Greece will be granted extended and enhanced reinvestment.

Greek ports on the rise: +70.8% in passenger traffic, +5,7% total movement of goods

According to new data on traffic of passengers, goods and mobile units in the Greek ports for the 2nd quarter 2021, announced by the Hellenic Statistical Authority, the total passenger traffic in Greek ports in the 2ndquarter 2021 recorded an increase of 70.8 % compared with the 2nd quarter 2020, while at the corresponding comparison of the 2nd quarter of 2020 with the 2ndquarter of 2019 a decrease by 67.0% was recorded. The total movements of goods in Greek ports in the 2nd quarter of 2021 increased by 5.7% compared with the 2nd quarter of 2020, while at the corresponding comparison of the 2nd quarter of 2020 with the 2ndquarter of 2019 a decrease by 11.5% was recorded. The total traffic of mobile units in Greek ports in the 2nd quarter of 2021 increased by 49.9% compared with the 2nd quarter of 2020, while at the corresponding comparison of the 2nd quarter of 2020 with the 2nd quarter of 2019 a decrease by 44.4% was recorded.

Greek tourism is targeting 50 million visitors and 27 billion euros in revenue

The Greek Tourism Confederation is already planning the post pandemic market. Has set a target for tourism revenues of 27 billion euros, 50 million arrivals and 307 million overnight stays per year by 2030. Following the Hellenic Tourism 2030 study drafted by the Deloitte-Remaco consortium, the plan that SETE will recommend to the government aims to gradually reduce Greek tourism’s seasonal character, as well as expending tourism activity to more regions of the country. Among the conditions for meeting the targets are the full recovery of Greek tourism to its pre-pandemic levels by 2023, the absence of any major external crises, the implementation of investment in public infrastructure, and focusing on specific markets and products.

Greek Parliament approves 2022 budget

The Parliament approved Greece’s 2022 budget with 158 votes out of 300 in favor on Saturday, December 18. Greece has registered a 9.3% growth in the first nine months of 2021, one of the highest across the eurozone and 2021 is expected to close with a rise well over 6,9% for the whole year. So far, a minimum 4.5% growth rate is expected for 2022. The unemployment rate is forecast to fall to 14.2% next year from 15.9% this year, while the inflation rate is projected at 0.8% in 2022. At the end of the debate, the Parliament Speaker noted that, during the 5-day budget debate, which lasted over 61 hours, 225 MPs and 36 ministers spoke.

City of Trikala leads the way in adoption of smart technologies

The city of Trikala, one of two Greek cities along with Athens to pilot the digitization of cities and citizens’ services through the European project Harmony, leads the way in adoption of smart technologies. Digital Governance Minister Kyriakos Pierrakakis visited the city and hailed it as a paradigm that serves as a model for the entire country. The minister said he was most impressed by the mayor and the city council’s “seal for innovation, change and new initiatives.”

Among other things, the minister saw maps of smart traffic lights, the city’s lighting system and water supply network, parking stations and environmental data including the level of water at local rivers.

Housing sector: Greek government plans for more financial relief

The Greek government has committed to providing further financial relief to households, businesses and farmers facing higher outgoings due to surging energy prices, said Prime Minister Kyriakos Mitsotakis. Natural gas prices have hit record highs in recent months, with energy demand outpacing supply, increasing energy costs across Europe.

Greece has taken a series of relief measures, including subsidizing electricity bills for four months since September and ramping up a grant for low-income households to help them buy heating oil over the winter. They will include further subsidies and discounts on power bills for households, businesses and low-income consumers this month. The government will also cover a big part of the energy costs incurred by farmers.

Greek Merchant Fleet

Data announced on the Greek Merchant Fleet showed a decrease by 0.1% in October 2021 compared with October 2020. A decrease of 2.2% was recorded in October 2020 compared with October 2019. The gross tonnage of the Greek Merchant Fleet, for vessels of 100 GRT and over, recorded a decrease of 3.7% in October 2021 compared with October 2020. A decrease of 4.9% was recorded in October 2020 compared with October 2019.