Greek Economy Shows Resilience with Projected 2.3% Growth

ATHENS – Greece projects robust economic growth and declining debt in its newly unveiled draft budget for 2025. Presented to Parliament on Wednesday by Finance Minister Kostis Hatzidakis, the budget forecasts a 2.3% GDP expansion in 2025, following an anticipated 2.2% growth in 2024. This positive outlook comes despite a challenging and uncertain global economic environment, underscoring the resilience of the Greek economy.

A key highlight of the budget is the projected decline in the government debt-to-GDP ratio. The government expects the ratio to fall to 147.5% in 2025, down from 154% in 2024. The Ministry of National Economy and Finance attributes this improvement to a balanced approach of fiscal responsibility and growth-oriented policies.

The budget also projects improvements in key economic indicators. Inflation, which reached 3.5% in 2023, is expected to cool to 2.7% in 2024 and further to 2.1% in 2025. The unemployment rate is also forecast to decline, dropping from 11.1% in 2023 to 10.3% in 2024 and 9.7% in 2025.

Private investment is expected to play a significant role in driving future growth. The budget shows a steady increase in private investment, accounting for 6.6% of total investment in 2023, and projected to rise to 6.7% and 8.4% in 2024 and 2025, respectively. This suggests increasing confidence in the Greek economy and its long-term prospects.