The strong growth of the Greek economy will
continue over the coming years, national economy and finance minister George
Alogoskoufis predicted on Monday, speaking on the sidelines of the annual
International Monetary Fund (IMF) and World Bank conferences being held in
Singapore. He also urged Greek
enterprises to further burst their outwardness, taking advantage of
participation opportunities in World Bank projects.
Alogoskoufis said that the rate of growth of
the Greek economy could potentially be revised to a level above the 3.8 percent
predicted in the state budget, due to the fact that interest rates in
Greece remained at historically low
levels, despite the increases announced by the European Central
Bank.
Greece also benefited from the recovery of
the European economy, Alogoskoufis added.
Regarding inflation, Alogoskoufis noted the
concern of the finance ministers of the countries attending the conference over
the upward pressures caused by the high oil prices
internationally.
He said that 3.2 percent remained the targeted
inflation rate for Greece in 2006, as predicted in the
budget, and stressed that, in every instance, the data that will arise over the
next few months, until the end of the year, would be
evaluated.
On the European economy, Alogoskoufis said that
all forecasts indicated that the current recovery would continue. He conveyed
the concern that existed, however, over the prospect of the planned increase in
VAT in Germany by 3 percentage points as of January 1, 2007 will result in a
reduction in consumption in that country, which he said was the steam engine of
the European economy.
Regarding the inflationary repercussions
created in the economies by the high price of oil, the determination of the
central banks governors for confronting them was expressed during the IMF
conference.
Alogoskoufis further said that finance
ministers were reserved on the prospect of a further decline of the real estate
market in the US, which would
have significant repercussions on the US economy and, by extension, on the
global economy.
The Greek economy and finance minister also
urged Greek enterprises to further boost their outwardness, taking advantage of
the opportunities for participation in World Bank
projects.
He said the goal was to increase the
participation of Greek companies in World Bank projects, estimated at 20 billion
dollars on an annual basis.
In recent years, due to the initiatives
undertaken, the participation of Greek firms in World Bank projects has risen
substantially, jumping to 24.5 million dollars in 2005 from just one million
dollars in 2003 and 2004, Alogoskoufis noted.
He said among the new initiatives being
undertaken for better briefing and preparation of Greek enterprises regarding
the terms and conditions for participation in the international tenders for
World Bank projects was the organization of a seminar for consulting
firms.
In light of the World Bank conference, he said,
specialized information would appear on the ministrys website to provide
information to the private sector on the World Banks system of procurements,
while a specialized electronic bulletin was being prepared that would provide
information on running tenders, instructions, and other useful
information.
The ministry would also organize, in
cooperation with the World Bank, a conference on liberalization of the network
and infrastructures markets in SE Europe, with the central message of "Greece as
a model of development in SE Europe", he said.
Finally, the pilot project Global Development
Learning Network (GDLN) was also being advanced, which provides for the creation
of a network of contacts of the Greek commerce and industry chambers and
organizations such as the Hellenic Exports Promotion Organization (HEPO) and the
Exports Council with corresponding chambers and organizations in Africa through use of the GDLN teleconferencing
infrastructure.
The project was being carried out by the World Bank, with
funding from the ministry.
