Greece’s Economic Outlook: Sustained Growth and Debt Reduction Through 2026

According to the European Commission’s Autumn 2024 Economic Forecast released on Friday, Greece’s growth rate is projected to remain robust and surpass the Eurozone and EU averages in 2025 and 2026. GDP growth in Greece is expected to reach 2.1% in 2024, 2.3% in 2025, and 2.2% in 2026, driven by the implementation of the Recovery and Resilience Plan (RRP). In contrast, the Eurozone’s GDP growth forecast for 2024 is 0.8%, with the EU as a whole at 0.9%.

Inflation in Greece is anticipated to be 3% in 2024, gradually decreasing to 2.4% in 2025 and 1.9% in 2026. The unemployment rate in Greece, currently below 10%, is expected to continue its decline, albeit at a slower pace.

The general government deficit is projected to keep shrinking, owing to zero spending growth. Combined with steady nominal GDP growth, this is likely to lead to a consistent reduction in Greece’s public debt as a percentage of GDP, expected to fall to 140% by 2026.

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link: https://greekcitytimes.com/2024/11/16/greeces-economic-outlook-sustained-growth-and-debt-reduction-through-2026/