Less growth, numerous risks

The Bank of Greece has lowered its forecast for this year's growth to 2.3% from 2.5% and is fully aligned with the latest estimates of the European Commission, against the budget's estimate for 2.9%.

The BoG's downgrade, the second since December, followed data on last year's growth, which, while outpacing the eurozone average, came in at a slower pace of 2%.

It noted that the main driving forces of economic activity will continue to be investments and private consumption, while the contribution from abroad will be marginally negative. Monetary policy will continue to be accommodative, while public investment will contribute positively to growth thanks to the Recovery and Resilience Fund.

However, the BoG points to risks of a further slide in the growth rate due to a possible worsening of the geopolitical crisis in Ukraine and the Middle East, with the...