Budget Office warns against ‘excessive nominal wage increases’

A woman walks in Syntagma Square in front of the Greek Parliament, a day after a general election, in Athens, Monday. 'The rise of the far-right in Greece is a reflection of a trend that is evident in most of Europe today,' the author says. [Reuters]

Nominal wage increases should not be excessive and should be proportionate to economy's ability to sustain them, the Greek Parliament's Budget Office warned in a report released on Monday on the fourth quarter of 2023.

The report also said that the Greek economy continues to grow, while the growth rate of real GDP in the 4th quarter of 2023 at 1.2% compared to the 4th quarter of 2022 (2%) and 2023 overall. 

Greece's growth rate (2%) is significantly higher than the respective one for the eurozone, as assessed by Eurostat for 2023 (0.4%).

In its assessment, the Budget Office said the annual forecast of annual growth for 2024 is 2.5% for the economy and 2.9% for inflation, consistent with other updated forecasts by the European Commission, the International Monetary Fund, and the Bank of Greece. The latter three assess the Greek economy's growth rate for 2024...

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