Bank of Greece (BoG) Gov. Yannis Stournaras on Monday reiterated that recession-battered Greece needs an "investment shock" in order to adopt a new and outward-looking economic growth model.
Stournaras spoke at an event sponsored by the Athens-based Foundation for Economic & Industrial Research (IOBE), where he added that the extended and profound crisis in Greece over the past decade generated three major changes in the country's growth model, namely:
- the collapse of bank lending, which was the primary financing source for households and businesses
- the shrinkage of private investment, especially in real estate and primary in the purchase of residences
- production turned towards external markets, given that domestic demand was affected by the recession.
