Hardophilus (EET): A decade of high inflation and interest rates is coming

The next ten years will see inflation and interest rates rise, with interest rates falling at a slower rate. Greece’s biggest problem is… demographic, but also they are not investing enough. Debts (public and private) that grow will affect government and monetary policies It will remain a burden on our country, and will cause serious restrictions in the futureWhile there should be no complacency regarding the structural deficit, which is approaching 3%. This is what he referred to President of the Hellenic Banking Association, Professor Gikas A. Hardovilis, speaking at the 22nd Annual Conference of the Association of Financial and Accounting Scholars in Greece (slip up).
In his speech on the topic “Can Greece Overcome Its Economic Challenges?”, Mr. Hardovelis noted that “the interest rates we have seen in the last 10 years have been in brackets, which I think has pinned those who deal with macroeconomics on the wall.”
He added that “The market shows that inflation will rise in the future from 1.5% to 2.5% and I believe that the next 10 years will have higher inflation. He noted that the past was very inappropriate. He said the issue of inflation affects interest rates, and estimated that “in the next 10 years, I see that we will also live in an era of high interest rates.” He even noted that inflation will fall at a slow rate, but interest rates will fall more slowly.
Of course, he was quick to assess, “I think monetary authorities and governments have learned from the suffering of the past, and I feel secure that whatever happens in the macro economy, they will be able to pull it together.”
In this context, as Chairman of the Board of Directors. The National Bank of Greece (NBH) indicated this In the latest bank stress tests, the bank emerged fifth out of 130 banks European Markets He stressed that other Greek financial institutions were also in the top 15. Thus, he emphasized, “we have competent supervision regarding the path of interest rates and inflation” and this happens “perhaps also because professors have entered central banks.”
Referring to Greece’s debt expressed confidence that it will remain a major issue in the futurePointing out that “it remains a burden that we will carry and will cause serious restrictions on what we move forward to do.”
He pointed out, however, that as a percentage of GDP in the period from 2020 to 2023, it recorded a “terrifying improvement” compared to other countries, and this development occurred “not because of an increase in GDP, but also because of an increase in inflation.” Which ultimately benefited the public debt.”
By linking Greece’s debt as a percentage of GDP to Italy’s debt, he confirmed that the debt in our country is on a downward trajectory and estimated that It will meet the neighboring country somewhere around 2025. «The market doesn’t see Italy making that, On the contrary, he actually sees the destruction.”
In his statement, Mr. Hardovelis stressed that the economic crisis had partially addressed financial imbalances and competitiveness issues, but “only in terms of costs.” “We have seen companies exit because they could not sell in Greece, but we still have a structural deficit of around 3%, and we have not been able to solve the problem.”
Naturally, referring to our country’s financial situation, Mr. Hardovillis emphasized that our country now has “credibility”, but wondered: “We have solved everything and are ready for twenty years of development where we will regain and find our old selves.” Are we once again close to rapprochement with the European Union?
However, he said, Investment has not returned to what it was before the financial crisisWhich reached 22%, productivity in terms of quality is not at a good level, the population in our country is decreasing and therefore “economic and political power is decreasing.”
He pointed out, “Our big problem internally is that we do not invest enough, but rather we only consume, and this represents a major headache.” He noted that we should invest not only in “easy” construction, as he characteristically put it, but “in goods and products that we can sell.” Of course, “the issue is, as a nation, do we have the capacity to produce more goods and services than we want to consume as consumers?” He stressed that the answer here is perhaps yes or perhaps no.
But he explained that in order to increase productivity “We must take care of our youth, and look at the environmentReferring to corporate governance issues, he said they came to Greece because foreigners imposed them on us. “I fought with them, but they did a good job,” he stressed.
He described as “stressful” what is happening to international trade and the obstacles that arise due to international situations and circumstances, and described it as “serious.” A big issue that needs a lot of attention.” The case in Greece.
Among other things, he noted in his statement that those who work in Greece should feel that there is justice and “when it is delayed, it basically does not exist and the motive of many lawyers is to delay it.”
It is noteworthy that the conference is organized by the graduate programs of the Department of Accounting and Finance at the Faculty of Business Administration at the University of Macedonia in Athens, and its work continues until tomorrow.

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