Greece Foreign Direct Investment (EUR bn)

High-frequency data suggests that the economy accelerated slightly in Q4 2022. Industrial output rebounded in sequential terms during the quarter amid softening price pressure for producers. Additionally, private consumption should have been resilient, buttressed by lower unemployment and inflation throughout the period. Heading into Q1 2023, momentum seems to be fading; the manufacturing PMI remained entrenched in contractionary territory in January. In other news, the government recently changed its approach to social policies: In late January, it decided to scale back spending on energy subsidies to EUR 95 million in February from EUR 840 million in January due to lower gas prices. Meanwhile, in February it unveiled a new aid package for pensioners, businesses and farmers worth EUR 800 million.