Greek economy on right track, reforms key to continued progress: OECD

ATHENS, Jan. 10 (Xinhua) -- The Greek economy was on the right track despite challenges, and structural reforms were key to continued progress, Secretary-General of the Organization for Economic Co-operation and Development (OECD) Mathias Cormann said here on Tuesday.

"Greece's reform efforts are paying off. The Greek economy is on the right track and it will be important to stay the course. The strong and rapid rebound in economic activity from the COVID-19 crisis is testament to these efforts," he said during joint statements to the press with Greek Prime Minister Kyriakos Mitsotakis.

During his visit to Athens, Cormann presented the findings of the OECD's latest Economic Survey of Greece. The country's gross domestic product (GDP) growth is expected to slow to 1.1 percent in 2023 from 5.1 percent in 2022, amidst the ongoing energy crisis and global uncertainty.

"Our own estimate for 2023 is that growth will be closer to 2 percent than 1 percent, a rate which ... will be three times the European average," Mitsotakis said during the press conference.

Greece's 2023 state budget, ratified by the parliament last month, foresees 1.8 percent GDP growth this year.

In order to sustain recovery, the OECD recommends keeping debt-to-GDP ratios on a downward path, and better allocating public spending to areas that support economic growth. The functioning of the labor market should be improved, the organization says, and efforts to foster the health of the banking sector maintained.

During the visit, the OECD and the Greek government also signed a memorandum of understanding for the establishment of an OECD center for population on the island of Crete. The center would research demographic and migration policies, as well as challenges related to the labor market.