Economic Growth in Greece at 2.3% in 2025: BOG

Economic growth in Greece is projected to be 2.3% in 2025, according to the country’s central bank‘s latest Monetary Policy Report.

The report forecasts economic expansion will decline by 0.5% to 2% in 2026 before picking up marginally to 2.1% in 2027. These growth rates are projected to exceed the euro area average, supporting a gradual convergence of Greece’s real per capita GDP toward the EU mean.

Domestic consumer spending aided by investments and exports is seen as the main driver for GDP growth, while the direct impact of newly imposed tariffs on Greece’s GDP is anticipated to be limited, given that the U.S. represents less than 5% of Greece’s total goods exports in 2024 and is not a major trading partner. The primary risks for Greece are likely to be indirect, mainly through a potential decline in external demand from the eurozone and a broader rise in economic uncertainty.

Inflation, as measured by the Harmonized Index of Consumer Prices (HICP), is expected to continue easing over the next three years, according to the Bank of Greece.

In 2025, inflation is projected to stand at 2.5%, reflecting persistent price pressures in the services sector. This resilience is primarily attributed to expected increases in wages and rents, as well as continued strong demand driven by tourism.

In 2024, Greece recorded a fiscal turnaround for the first time since 2019, with the general government balance shifting from a deficit of 1.4% of GDP in 2023 to a surplus of 1.3% of GDP.

The primary balance of the general government reached a surplus of 4.8% of GDP, significantly exceeding the forecast set out in the state budget.

Source: tovima.com