Greece’s economy is set to maintain strong growth, with the European Commission’s Spring 2025 Forecast projecting GDP expansion of 2.3% in 2025 and 2.2% in 2026. The upbeat assessment was welcomed by Labor and Social Security Minister Niki Kerameus, who highlighted the country’s fiscal and labor market achievements in a statement on Tuesday.
“The European Commission recognizes our country’s progress. The Greek economy has outperformed expectations,” Kerameus said in a social media post. She pointed to a 1.3% budget surplus—far exceeding the earlier forecast of a 0.6% deficit—as well as declining unemployment and rising employment rates.
Kerameus also credited the expansion of the Digital Work Card to the tourism and food service sectors for boosting labor market transparency and compliance. According to March 2025 data, reported overtime in tourism surged by 637%, while food service saw a 55% increase.
The Commission’s report noted that growth is being driven by robust private consumption and a wave of EU-funded investment, even as high import demand and a weak export performance weigh on net trade. Despite a contractionary fiscal policy, Greece’s economy expanded by 2.3% in 2024.
Inflation is forecast to gradually decline, reaching 2.3% in 2026, though wage pressures and services inflation remain elevated. Core inflation (excluding food and energy) is projected at 3.5% in 2025 and 2.6% in 2026.
Greece’s debt-to-GDP ratio continues to fall and is expected to reach 140.6% by 2026, supported by solid nominal growth. The country is also expected to be only mildly impacted by U.S. tariffs, due to limited trade exposure.
“We are moving forward with determination,” Kerameus affirmed, underscoring the government’s focus on reforms and resilience.
Source: tovima.com
