Study: Greek Economy Outpaces Eurozone Average

Despite multiple shocks in recent years, including the COVID-19 pandemic and the energy crisis, the Greek economy has demonstrated remarkable resilience, according to a new analysis by Morningstar DBRS.

The report highlights that Greece’s real GDP growth has outperformed the eurozone average every year since 2021, with forecasts suggesting that this trend will continue. According to the analysis, this performance reflects not only a recovery after years of contraction but also structural improvements driven by fiscal and economic adjustments.

Greece’s economic model is now more export- and investment-oriented, relying less on consumption and displaying fewer imbalances compared to the past. In 2023, economic activity expanded by 2.3% year-on-year, while real GDP is expected to grow by over 2% this year, supported by strong private consumption, exports, and rising investment.

Despite uncertainties, the Greek economy is likely to continue outperforming the eurozone this year. This resilience is underpinned by inflows of European Union (EU) funds, robust private consumption, and a strengthened banking sector, the report notes.

However, emerging challenges—including geopolitical risks—could test Greece’s economic stability in the future. To sustain its progress, the country will need to remain vigilant in advancing reforms toward a more diversified and sustainable economic model.

Accelerating structural reforms to boost investment and productivity, while effectively utilizing external capital, will be crucial in addressing Greece’s economic legacy. These efforts will help the country tackle structural challenges and maintain growth beyond the expiration of the EU’s Next Generation funds, the analysis concludes.