IMF Forecasts 2% Growth for Greek Economy in 2026

The International Monetary Fund (IMF) has projected that the Greek economy will grow by 2% in 2025 and maintain the same pace in 2026, following 2.3% growth in 2024, according to its latest World Economic Outlook report released today.

Greece’s growth rate is expected to remain higher than the Eurozone average, which is forecast at 1.3% for both this year and 2026. The IMF also predicts a continued decline in unemployment, from 10.1% last year to 9% in 2025 and 8.4% in 2026.

Regarding inflation, measured by the harmonized Eurostat index, the IMF expects it to average 3.1% in 2025, up slightly from 3% last year, before declining to 2.5% in 2026. The current account deficit is projected to shrink from 7% of GDP in 2024 to 5.8% this year and 5.3% in 2026.

Titled “Global Economy in Constant Flux, Outlook Remains Uncertain”, the IMF report highlights ongoing volatility in the world economy. The fund notes that global markets are adjusting to new policy measures, including US tariff increases, some of which have been partially mitigated by subsequent agreements. Temporary factors that boosted activity in the first half of 2025, such as frontloading of exports to the US, are expected to fade.

Global growth is now forecast to slow from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026. Advanced economies are expected to grow around 1.5%, while emerging and developing markets are projected slightly above 4%. Inflation is expected to continue declining globally, though differences between countries will persist, with the US likely to remain above target while other nations remain below.

The IMF warned that downside risks to growth persist, citing prolonged uncertainty, rising protectionism, labor supply disruptions, fiscal weaknesses, potential financial market corrections, and institutional erosion. The fund called on policymakers to restore confidence through credible, transparent, and sustainable policies.

It emphasized the importance of combining trade diplomacy with macroeconomic adjustments, accelerating structural reforms, and maintaining central bank independence.