The head of the Athens-based Foundation for Economic & Industrial Research (IOBE) on Thursday forecast gross investments in Greece this year will surge to nearly 11% of GDP, up from 3.2% in 2023.

In presenting IOBE’s quarterly report, Nikos Vettas said gross fixed investments will reach 11% this year, up from 7.3% last year.

At the same time, IOBE lowered its growth forecast for Greece in 2023, saying the figure will reach 2.2% instead of the previously announced 2.4%.

For the ongoing year, Vettas said the forecast remains at 2.4%.

Regarding inflation, it was calculated by IOBE at 4.2% for 2023 and falling to 2.8% in 2024.

According to Vettas, a forecast increase in private consumption will be fueled by higher wages and decreasing unemployment, meaning that more income will enter the market.

“We are observing a steady and clear improvement in the Greek economy…The Greek GDP is rising faster than the EU (average), so we have convergence. It is accompanied by a reduction in unemployment and a slow but steady coverage of the investment gap. International investment confidence is reinforced and the difference in the cost of financing is reduced. At the same time, the dynamics in tourism and real estate are strengthened with the recovery of domestic and foreign direct investments,” he added.