The Greek economy is expected to expand by 2.2% in Q2 2025, similar to the first quarter, according to the Foundation for Economic & Industrial Research (IOBE).
While IOBE maintains its positive outlook on the growth of the economy in 2025, also projecting 2.4% GDP growth in 2026, it expressed concerns about the level of inflation.
The General Director of IOBE, Nikos Vettas, highlights consumer spending as the primary driver for growth, stressing it is forecast to reach 1.8% in 2025, easing to 1% in 2026.
Vettas expressed his apprehension over the investment arc in Greece. While the Greek economy posted a 2.2% growth rate in the first quarter, he noted that the quarter-on-quarter change was flat, which he described as worrying. He also pointed to a 3.2% decline in fixed investments during Q1 2025, warning, “If this proves to be a trend, it is very concerning. Otherwise, we need to understand what caused it.”
The head of IOBE highlighted broader uncertainties, including the extent of trade protectionism and challenges facing both monetary and fiscal policy. He also cited risks stemming from ongoing regional conflicts.
Given these factors, there are mounting concerns over renewed inflationary pressures, slowing global growth, increased market volatility, and delays in new investments.
Greece’s inflation is expected to reach 2.8% this year and ease to 2.3% next year, according to estimates by the Foundation for Economic and Industrial Research (IOBE). However, Vettas noted that inflation remains a concern as it is still relatively higher than the average rates in both the eurozone and the European Union.
Source: tovima.com
