Budget 2022: Tourism to Help Greece Meet Growth Goals 

Hellenic Parliament, Athens (archive photo)

Greece has set its growth target for 2022 to 4.5 percent driven by a faster recovery this year as a result of strong tourist flows, consumption, and Covid-19 financial support, according to the final 2022 budget tabled in parliament on Friday.

The budget projects GDP growth at 11.7 percent in the 2021-2022 period generated by investments, tourism and consumption.

For this year, the Greek finance ministry revised its October forecast of 6.1 percent growth expecting the economy to expand by 6.9 percent driven in large part by better-than-expected tourist flows

The tourism industry this year is projected at recouping approximately 55 percent of 2019 levels, achieving revenues of 10 billion euros.

Consumption also contributed to growth fueled by government support measures, while investments are estimated at increasing by 11.7 percent in 2021.

Paving the way for growth in 2022 are investments, predicted to increase by 21.9 percent, and recovery and resilience funding, set to contribute 2.9 points to the country’s GDP. 

Tourism, meanwhile, is forecast at recovering 80-85 percent of pre-pandemic 2019 levels with revenues estimated at reaching 16 billion euros in 2022.

Finance Minister Christos Staikouras. Photo source: cstaikouras.gr

Prefacing the 2022 budget, to be voted on by year-end, Finance Minister Christos Staikouras said data showed the Greek economy had recovered more than two-thirds of lost GDP.

Crucial to achieving growth targets, authorities say, is ensuring a steady return to normalcy through the far-reaching implementation of the country’s vaccination program, which will facilitate market operation and tourism recovery.

Meanwhile, tax revenues increased by 1.23 billion euros in the January-October 2021 period strengthened by income tax returns and increased tourist activity  which boosted VAT revenues.