Bank of Greece Governor Calls for Shift in Growth Model
Speaking at the Hellenic Institute of Customer Service (HICS), the central banker covered a wide range of issues related to the domestic market and the Greek economy, stressing that investments are crucial for future growth.
he governor of the Bank of Greece (BoG), Yiannis Stournaras, said the country’s economic growth should not rely solely on private consumption, adding that steady investment flows are required to maintain positive rates.
Speaking at the Hellenic Institute of Customer Service (HICS), the central banker covered a wide range of issues related to the domestic market and the Greek economy, stressing that investments are crucial for future growth.
Stournaras underlined the need for a shift in the growth model, prioritizing innovation and bolstering productivity. The banker also highlighted the need for extroversion in trade exports, while he called for an effective plan to deal with climate change, and facilitating the green transition.
“Higher rates of productivity growth make it possible to achieve higher real wages without jeopardizing competitiveness or employment. Productivity gains can stem from increased investment—particularly in innovative activities—through reforms, and by strengthening economic activity in the most productive sectors of the economy,” said the governor of the Bank of Greece.
Referring to the role of the Recovery and Resilience Facility (RRF), he noted that it “has undoubtedly been one of the key catalysts of the economic recovery. Unlike in previous periods, Greece achieved high absorption rates, ranking among the EU member states with the fastest implementation of the program.”
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