Pretty much two weeks following the disaster brought on by Daniel, the government and economists are nonetheless struggling to assess the extent of the harm. The difficulty is that no complete record has been produced of what was lost forever underwater. Additionally, there is uncertainty as to no matter if the fields will be cultivated once more, no matter if the destroyed production facilities will reopen, no matter if the flooded will return to their houses, and no matter if the solutions will regain their spot in foreign markets.
Luckily, €2.85 billion is presently obtainable for recovery. This consists of €600 million from the rebalancing spending budget for quick household help and small business compensation, as nicely as €2.25 billion anticipated from Brussels in 2021 and 2024. With this funding, the state has the sources it requires to start the challenging recovery course of action.
Nevertheless, in order to safe EU funding, it is essential that roads, railways, sewage networks and anti-flood and erosion measures are developed and implemented properly and effectively. However, the Greek state is not identified for its speed and efficiency in such undertakings. These infrastructure projects need to be completed swiftly in order to access the needed funds.
Although a strike on Thessaly, which contributes five.two% of GDP and 14.1% of agricultural output, is predicted to be feasible, there are nonetheless issues about the effects on the general economy. Inflation, GDP and balance sheet are locations of concern. The general forecast for 2023 will not be substantially impacted, but there are issues about the circumstance in 2024.
Bank of Greece Chief Economist Dimitris Maliaropoulos explains that the disaster will have a damaging influence on GDP, inflation and the balance sheet. He estimates that development in the fourth quarter will be about 1% due to the circumstance in Thessaly.
In conclusion, whilst the disaster brought on considerable harm, the nation has the sources to start recovery efforts. Nevertheless, challenges lie ahead, which includes the need to have for effective infrastructure improvement and issues about the influence on the economy in the coming years.