Strengthening growth The economic situation in Greece has started to pick up this year, with the economy stabilising and seasonally-adjusted real GDP increasing by 0.2% quarter-on-quarter in Q2 2013. Overall, GDP growth is expected to turn positive next year at 0.6%. But while these are welcome developments, they still represent a relatively weak recovery, especially given the depth of the recession that preceded it.
In my view, to add momentum to this recovery and lay the foundations for medium-term growth, the authorities need to address three challenges. First, increasing the economy’s external competitiveness; second,  BIS central bankers’ speeches  3  ensuring the banking sector can fund the recovery; and third, attracting productive foreign investment.