ATHENS (Reuters – Greece’s economic growth is expected to increase by 2.9% this fiscal year, with an additional disbursement from the Recovery and Resilience Facility of the European Union. Growth was projected to rise to 3.5% by 2023.

According to The European Bank for Reconstruction and Development (EBRD), the impact of the Ukraine war on Greece’s economy may not be as direct, but indirect. It could result in higher energy prices due to its dependency on oil imports.

The EBRD stated that there are other headwinds such as disruptions in supply chains, increasing costs of financing, and lower than expected tourist arrivals should a recession hit major west European countries.

Greece’s economy returned to strength last year, as its gross domestic product (GDP), grew 8.3% due to an increase in consumption and increased investment. There was also a partial recovery in the tourism sector.

Last year, 838million euros was invested by the EBRD in Greece. That makes it one of its top five fund recipients.

($1 = 0.9483 euros)