It is unclear how the conflict in Ukraine will affect prices, Greek Finance Minister Christos Staikouras said on Friday, but “we need to be calm, we are at war”.
Speaking at Open TV station, Staikouras said, “We do not know how the situation will work out. The picture we have is that each day is worse than the previous one.” The main sectors affected will be as following, he said:
– Trade, with the basic issue being cereals – Uncertainty leading to higher borrowing costs, especially for Greece which is not investment grade – Inflation and development, as every 10% rise in energy prices, pushes inflation up by 0.2 points – Tourism, as Greece could be affected by a reduction in foreign tourists’ available income, and – Fiscal cost, in supporting refugees from Ukraine, helping that country, defense costs and support measures.