Statista: Greece - the country with the most people worried about their financial future

A.V.
English Section / 27 mai

Statista: Greece - the country with the most people worried about their financial future

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OECD: The main challenges in the Greek economy - productivity consolidation and fiscal adjustment

The widening cost of living crisis and rising inflation in recent years have made many households wary of their bank balances, and this sentiment is particularly pronounced in Greece, according to survey data by Consumer Insights Statista.

The figures show that in Greece, six out of ten people are worried about their financial future (60%), well above the average of 38% in the 39 countries surveyed. Portugal and Argentina also have high weights in this regard, close to the 50% mark, with financial uncertainty being widespread. Even in France, one of the countries with the lowest proportion of people who said they were worried about their financial future, around three in ten have these fears.

According to the survey, after Greece - with 60%, the ranking regarding the share of people worried about their financial future, shows as follows: Portugal 49%, Argentina 48%, Brazil 46%, Spain 43%, USA 36%, Germany 36%, Great Britain 35 %, Switzerland 30%, France 29%. The survey was conducted between April 2023 and March 2024, on a sample of 1,000 to 60,000 adults aged between 18 and 64.

OECD: Greece's economy to grow by 2% in 2024

The Greek economy remains resilient and is expected to expand by 2% in 2024 and 2.5% in 2025 as employment and real wage growth as well as strong tourism boost consumption, according to the report biannual of the Organization for Economic Co-operation and Development (OECD), taken over by greekreporter.com.

Despite the slowdown in new job growth, the employment rate and labor shortage remain at historically high levels, the source said. Wage growth in Greece reached 5.5% in the fourth quarter of 2023 at an annual rate, the OECD said, noting that the minimum wage rose by 9.4% in April 2023 and by another 6.4% in April 2024.

The report adds that the absorption of resources from the Recovery and Resilience Fund and continued improvement in bank soundness will support investment despite tight financial conditions, with investment forecast to grow by 9% in 2025.

Inflation in Greece will continue to fall, but at a slower pace and is expected to reach 2.1% in the last quarter of 2025, according to the OECD. The same source shows that the forecast for a primary surplus of 1.8% of GDP this year and 2.1% in 2025 looks about right, given the high public debt. The report estimates that Greek public debt will fall to 151% of GDP in 2025, from 161% in 2023. Economic growth and further progress in the fight against tax evasion will boost public revenues, the OECD notes, recalling that the main challenges facing the Greek economy are strengthening productivity and fiscal adjustment, due to high indebtedness. The organization noted that sustained and strong economic growth will be needed to continue debt reduction, along with large spending that is needed due to low investment in the crisis-hit decade, an aging population and the response to climate change.

Productivity growth, which is a third lower than the OECD average, would create more fiscal space and raise living standards, according to the OECD.

Greece approved its 2024 budget in December, forecasting economic growth of 2.9 percent this year, up from 2.4 percent in 2023, on the back of solid tourism revenue and EU funds supporting investment.

Greece regained its "investment grade" status (recommended for investments) in 2023, after 13 years. Rating agency Fitch Ratings has upgraded Greece's long-term default risk rating (IDR) to "BBB-", from "BB+". Fitch was the second of the big three US rating agencies, after S&P, to give Greece a higher investment grade. This will allow more institutional investors to buy Greek bonds, thereby increasing capital flows and further helping to limit borrowing costs for the Athens government and Greek companies.

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