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Why Citigroup expects a multi-year cycle of strong growth for Greece


A “complete” recovery from the pandemic would require the GDP of the eurozone countries to grow significantly above the pre-pandemic trend, Citigroup estimated in a special analysis by its economist Christian Schulz.
The rapid reduction in public debt that increased by 20 percentage points in the eurozone during the six years of the pandemic is unrealistic and perhaps not even desirable.
According to the bank’s calculations, a permanent increase in production by just 1 στην% of GDP in the eurozone would be enough to offset the debt increase of 20% of GDP during the pandemic period.
The ECB, on the other hand, would like a stronger recovery, and although inflation has already returned to pre-pandemic levels, this is not so important, as the central bank’s monetary policy is using almost the same means which were simply strengthened during the pandemic. ....

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