The European Bank for Reconstruction and Development (EBRD) projects Greece’s economy to grow by 2.4% in 2024 and 2.6% in 2025, continuing a trend of robust economic performance.
According to the EBRD's latest report, Greece’s GDP grew by 2.1% year-on-year in the first quarter of 2024 and accelerated to 2.3% in the second quarter, supported by strong private consumption and increased fixed capital investment.
A major driver of growth has been Greece’s thriving tourism industry, with 2024 set to potentially surpass last year's record-breaking season. Tourist arrivals surged by 15.5% in the first half of 2024 compared to the same period in 2023, bolstering economic activity across the country.
Improved labour market conditions further supported economic growth, as Greece’s unemployment rate dropped to 9.6% in June 2024, marking a 15-year low.
On the fiscal front, Greece has maintained strong performance, with the budget returning to a primary surplus in 2023. The surplus reached 0.9% of GDP in the first five months of 2024, compared to 0.6% in the same period the previous year, driven by higher tax revenues. Despite Greece’s public debt remaining the highest in Europe at 161.9% of GDP at the end of 2023, the EBRD noted it had declined, thanks to strong nominal GDP growth and a primary fiscal surplus.
Inflation also showed signs of easing, averaging 3% year-on-year in the first half of 2024, though core inflation remained relatively high at 3.3% as of June.
The EBRD’s outlook signals ongoing stability and growth for Greece, with investment and tourism expected to play key roles in the country’s economic trajectory over the next several years.
(Source: Amna)