Ηλίας Λεκκός, 4o Συνέδριο Επαγγελματικής Ασφάλισης

Growth in Times of Trouble
22 February 2023
Economic Research & Investment Strategy

2
1 Global Economy
2 Greek Economy

3
EA Business Cycle | Based on Major EA Economic Variables EA Business Cycle | Based on Major EA Economic Variables
3 months ago
Source: Economic Research & Investment Strategy
EA Business Cycle | Relative stagnation in most economic variables in EA
IFO main index
Exports
Constr. Conf.
Industr. Conf.
Econ. Sent.
Serv. Conf.
Industr. Prod.
Manuf. Orders
(Germany)
-2.0
-1.0
0.0
1.0
2.0
-0.30 -0.20 -0.10 0.00 0.10 0.20 0.30
RECESSION RECOVERY
EXPANSION
DOWNTURN
Data until Jan2023
Industr. Conf.
IFO main index
Serv. Conf.
Constr. Conf.
Exports
Industr. Prod
Manuf. Orders
(Germany)
Econ. Sent.
-2.0
-1.0
0.0
1.0
2.0
-0.30 -0.20 -0.10 0.00 0.10 0.20 0.30
RECESSION RECOVERY
EXPANSION
DOWNTURN
Data until Oct2022

4
Interest rates l Market Expectations Implied Overnight Rate based on Overnight Index Swaps
EA Short-Term Rates I Markets now look at a Policy Rate of 3.5%
1.50
2.00
2.50
3.00
3.50
4.00
Implied
Rate
Mar-23
May-23
Jun-23
Jul-23
Sep-23
Oct-23
Dec-23
Before ECBMeeting (01.02.23)
Before ECBMeeting(09.12.22)
As of 15.02.23
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Jan-21
Jan-22
Jan-23
Jan-24
Jan-25
Jan-26
ESTER/ON Rate EUR OIS fwr 9Y/1Y (3mma) EUR OIS FORWARD
2Yr1Yr FWD*
3Yr1Yr FWD*
1Yr1Yr FWD*
*: impliedfrom the latest available daily data
2.4
2.97
*ESTER/ON:
*EUR OIS fwr 9Y/1Y:

5
Growth Rate Outlook Growth Rate Estimate
EA GDP Outlook I We Revise 2023 Real GDP Growth Rate to 0%
-14.2
14.2
-15
-10
-5
0
5
10
15
-5
-4
-3
-2
-1
0
1
2
3
4
5
Q1
2015
Q1
2016
Q1
2017
Q1
2018
Q1
2019
Q1
2020
Q1
2021
Q1
2022
Q1
2023
GDP (%, Q/Q) (LHS) GDP-Estimate (%,Q/Q) (LHS)
Long-term average of Q/Q,% (LHS) GDP (%, Y/Y)
GDP-Εstimate(%,Υ/Υ)
-15
-10
-5
0
5
10
15
2000Q4
2002Q2
2003Q4
2005Q2
2006Q4
2008Q2
2009Q4
2011Q2
2012Q4
2014Q2
2015Q4
2017Q2
2018Q4
2020Q2
2021Q4
2023Q2
Real GDP (%,Υ/Υ) Estimate for 2q ahead

6
1 Global Economy
2 Greek Economy

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Economic Outlook
Source: ELSTAT, Bank of Greece, Ministry of Finance, Piraeus Bank Research
Piraeus Bank Research
Economic Outlook, Baseline Scenario
2021a 2022e 2023 2024 2025
Real GDP (% change) 8.4 5.8 3.6 3.7 3.6
Inflation (CPI, % change) 1.2 9.6 2.5 1.8 1.9
Unemployment rate (% of labour force) 14.7 13.2 12.4 11.8 11.4
Non-residential real estate prices (% change)(1) 1.6 3.4 2.8 3.4 4.0
Residential real estate prices (% change) 7.6 7.9 6.7 6.3 6.0
General Government Primary Balance (% of GDP) -5.0 -1.6 0.5 up to 1.0 1.5 up to 2.0 1.5 up to 2.0
General Government Gross Debt % of GDP) 194.5 171.3 164.5 152.1 143.8
Note: (1) based on Office price index

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Economic Sentiment Indicator
Greece vs Euroarea (ESI, sa data) ESI vs Real GDP growth rate (%, sa data)
Source: ELSTAT, European Commission | DG ECFIN, Piraeus Bank Research
A mild winter and lower energy prices have contributed to an improvement of the Economic Climate

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The Paradox of Real versus Nominal GDP
Source: ELSTAT, Piraeus Bank Research
9m.21 average annual % change: 8.4%
9m.22 average annual % change: 5.9%
Real GDP (% change, sa data) Gross Domestic Product
Current prices & 2015 prices (€ bn)

10
Industrial Production Index (sa data)
Turnover Index in Retail Trade (excl. fuels, sa data) Turnover Index in Motors Trade (sa data)
Short-term Economic Indicators: Available data suggests positive dynamics in the Greek economy
Turnover Index in Wholesales Trade (sa data)
Production Index of Building Constructions
(sa data)
Turnover Index in Services
(excl. trade & motors, sa data)
Source: ELSTAT, Eurostat, Piraeus Bank Research

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Turnover of Enterprises 1,2 (€ bn)
Note: 1) Only double-entry accounting bookkeeping. Enterprises with single-entry accounting bookkeeping are obliged to submit data to tax authorities on a quarterly basis, while enterprises with double-entry
accounting bookkeeping are obliged to submit data respectively on a monthly basis. Therefore, for the total of enterprises, data are available only on a quarterly basis.
2) The enterprises that were under suspension of operation, on the basis of state order, due to covid-19 were classified in the following economic activity classes: 47 Retail trade (exc. motor vehicles &
motorcycles), 55 Accommodation, 56 Food & beverage service activities, 59 Motion picture, video, television programme production etc., 71 Architectural & engineering activities etc, 77 Rental & leasing activities,
82 Office administrative & support etc, 85 Education, 88 Social work activities without accommodation, 90 Creative, arts & entertainment, 91 Libraries, archives, museums etc, 92 Gambling & betting activities, 93
Sports activities, amusement etc, 94 Activities of membership organisations, 96 Other personal service activities
Travel Receipts (€ bn)
Turnover of Enterprises: Sales growth exceeds even the most optimistic expectations
Source: ELSTAT, Bank of Greece, Piraeus Bank Research

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Turnover of Enterprises
Note: Only double-entry accounting bookkeeping. Enterprises with single-entry accounting bookkeeping are obliged to submit data to tax authorities on a quarterly basis, while enterprises with double-
entry accounting bookkeeping are obliged to submit data respectively on a monthly basis. Therefore, for the total of enterprises, data is available only on a quarterly basis. Energy, water supply, financial
activities, real estate, education, public sector are excluded, due to lack of available data for every month for 2021 or 2022. Unknown activity is excluded.
Turnover of Enterprises: Tourism related sectors witness the highest change in 2022

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Unemployed (sa data, thousand persons)
Unemployment Rate (sa data)
Labour Force (sa data, thousand persons)
Employed (sa data, thousand persons)
Unemployment Rate: Continued economic growth has kept unemployment on a declining track
Inactive Population (sa data, thousand persons)

14
Household Finances: Back to a positive Saving Ratio
Household Disposable Income vs Private Consumption
(Current prices, € bn)
Households Gross Saving Ratio
( % of households disposable income)
2013 Gap:
€ -7.3 bn
2021 Gap:
€ + 4.7 bn

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Source: ELSTAT, Eurostat
Overall HICP (annual % change) HICP Energyvs HICP excl. Energy2. (annual % change)
Inflation: Headline inflation moderates on the back of a massive Energy inflation decline
CPI vs Core CPI 1. (annual % change)
Notes: 1. Core Ιnflation: CPI, excluding food, beverages, tobacco and energy
2. Provisional data

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Source: ELSTAT, Ministry of Finance, Piraeus Bank Research
General Government Primary Balance (% of GDP)
(2010 – 2020: ESA definition, excl. support to financial institutions)
General Government Public Debt
(% of GDP)
Fiscal Balance & Debt Dynamics: it’s all about fiscal rationalization (fiscal balance) &
snowball effect (debt)

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Direct payments 14.5
Rural development 4.4
Market measures 0.4
TOTAL 19.3
COMMON AGRICULTURAL POLICY 2021 - 2027 (€ bn)
Main Pillar Grants % of total Loans
Total Grants &
Loans
1. Green Transition 6.2 34%
2. Digital Transformation 2.2 12%
3. Employment skills and social cohesion 5.2 28%
4. Private investment &
transformation of the economy
4.8 26%
TOTAL 18.4 100% 12.7 31.2
NATIONAL RECOVERY AND RESILIENCE PLAN "GREECE 2.0", 2021 - 2026 (bn €)
Source: European Commission, Ministry of Development, Ministry of Rural Development & Food, Ministry of Finance, Ministry of Finance :Greek National Recover and Resilience
Plan https://greece20.gov.gr/en/the-complete-plan, Piraeus Bank Research
EU Budget, NGEU & Domestic Development Funding: Total amount of €87bn in 2021 – 2027
Note: (1) The National Recovery and
Resilience Plan “Greece 2.0” was
approved by ECOFIN on 13 July 2021. The
“Greece 2.0” plan includes 106
investments and 68 reforms, utlising
investment resources of 31.2 billion
euros, of which 30.5 billion European
funds (18.4 billion euros in grants and
12.7 billion euros in loans) will mobilise a
total of 60 billion euros in investments in
the country over the next five years.
Human Resources and Social Cohesion 4.2
Competitiveness 3.9
Environment and Climate Change 3.6
Transportation 2.2
Fair Development Transition 1.6
Digital Transformation 0.9
Civil Protection 0.7
Technical Assistance and Beneficiary Support 0.5
Fisheries, Aquaculture and the Sea 0.5
13 Regional Programs 8.1
TOTAL FUNDS 26.2
out of which" National contribution" 5.3
NATIONAL STRATEGIC REFERENCE FRAMEWORK, 2021-2027 (bn €)
Sectoral Programmes (68.35%), of which: 6.8
Ministry of Infrastructure and Transport 2.6
Ministry of Maritime Affairs and Insular Policy 0.9
Ministry of Development 0.9
Ministry of Education 0.6
Ministry of Interior 0.5
Ministry of Digital Governance 0.4
Ministry of Environment and Energy 0.3
Ministry of Health 0.2
Ministry of Culture & Sports 0.2
Ministry of Labour and Social Affairs 0.1
Ministry of Justice 0.0
Ministry of Tourism 0.1
Other Sectoral Programmes 0.2
Regional Programmes (22.5%) 2.3
Continuance of specific programmes
(North & South Aegean, Athens Municipality)
0.2
Technical assistance programme 0.01
Reserve 0.8
TOTAL 10.0
NATIONAL DEVELOPMENT PROGRAMME [NDP, 2021-2025]
(€ bn)

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Macroscopic View: Under our baseline scenario for GDP, Investment / GDP, Depreciation & Capital
Stock, Greece could absorb €373 bn of new investment until the end of the decade.
Source: AMECO, Piraeus Bank Research
Investments & Net capital stock (€bn ,constant prices 2015, nsa data)

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Net Foreign Direct Investment: Greek Economy open to foreign capital, while demand for real estate
maintains its momentum
Net Foreign Direct Investment (FDI) in Greece by industry
classification* (mn €)
*: (excl. financial services activities, except insurance and pension funding)
Source: ELSTAT, Bank of Greece, Piraeus Bank Research
Real Estate FDI in Greece1
(annual cumulative flows, € mn)
Note: 1) Net Foreign Direct Investment in Greece: Real Estate

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Exports: A more extrovert and open Greek Economy, with an increasingly more sophisticated export
offering
Exports of Goods & Services
(current prices, as % of GDP)
Source: ELSTAT, World Bank –WITS, Piraeus Bank Research
Greek exports by technology categories
(as % of total)
• Products by technological level were categorised by Lall’s (2000) technological categorization | UNCTAD’s
rev.3 product’s technological hierarchy Lall (2000), generation date: 27 January 2023.
• Product categorisation is according to the Standard International Trade Classification (SITC) revision 3
• Excluding petroleum-related products (33) and product category "commodities and transactions, n.e.s." (9).

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Conditions for Successful EA membership: “Painless deleveraging” and “ Price Competitiveness”
Real Effective exchange rate index
with respect to EA countries
(index, 2000=100)
Source: European Commission: AMECO database, ELSTAT, Bank of Greece, Piraeus Bank Research
Interest rate (%, gross public debt)
Nominal GDP growth (annual % change) &
General Government Public Debt ratio (as % of GDP)

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