The Latest Business News in Greece: What You Need to Know Today
Greece has been in the news lately for various reasons, but what’s going on in the Greek business world? In this article, we’ll explore the latest business news in Greece and what it means for the economy and investors.
Tourism Rebounding Strongly
Greece is known for its beautiful beaches, crystal-clear water, and historic landmarks, which makes it a top destination for vacationers. In 2020, tourism, like in most countries, experienced a significant setback due to the COVID-19 pandemic. However, with the vaccination campaigns rolling out around the world and a relatively low number of COVID-19 cases in Greece, the tourism sector is rebounding strongly in 2021. According to Eurostat, the number of nights spent in tourist accommodation rose by 40% in May 2021 compared to the same month in 2020.
Investment Opportunities in the Renewable Energy Sector
The Greek government is working toward renewable energy targets to reduce greenhouse gas emissions and to reach a goal of generating 35% of electricity from renewable sources by 2030. Recent developments in the renewable energy sector have attracted foreign investment, and over €2.2bn ($2.6bn) has been invested in Greece’s solar market so far in 2021. The Greek government also launched a new investment program for renewable energy projects worth €5bn ($5.9bn) in July, attracting investors and developers.
Fiscal Targets Achieved
Greece’s primary surplus, which is the budget balance excluding debt servicing, has increased to almost 7% of GDP in 2020, exceeding the country’s target of 3.5%. Achieving these fiscal targets has generated a sense of confidence in the international community, and rating agencies have increased Greece’s credit ratings, making it easier for the Greek government to issue bonds.
Greek Banks Tighten Lending Standards
Greek banks are tightening their lending standards, which can indicate a lesser willingness to take on risks. The central bank of Greece reported that in Q2 2021, banks tightened their lending standards and raised the cost of credit for the first time since 2015. This move might slow down Greece’s economic recovery, as it can reduce the availability of credit to households and businesses.
Conclusion
The Greek economy is recovering from the impacts of the COVID-19 pandemic, with the tourism sector rebounding strongly and investments pouring into the renewable energy sector. Despite the bumpy road it has traveled, Greece has achieved its fiscal targets, which continues to attract investors. However, the tightening of lending standards by Greek banks can have a dampening effect on economic growth. Investors should keep an eye on the ongoing developments and trends in Greece’s business industry, as the country holds significant investment opportunities.
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