EBRD sees Greek economy grow 2.4% this year and 2.6% in 2025

According to the new report of the European Bank for Reconstruction and Development, Greek GDP will grow at a rate of 2.6% in 2025, while tourism will set a new record.

The European Bank for Reconstruction and Development (EBRD) sees Greece’s growth at 2.4% this year and 2.6% in 2025.

“Greece’s economic performance remained strong in 2024 as GDP grew by 2.1% year-on-year in the first quarter and 2.3% in the second quarter, boosted by private consumption and fixed capital investment,” the report said.

Greece is on track for another strong tourism season in 2024, possibly surpassing last year’s record performance. Tourist arrivals increased by 15.5% in the first half of 2024 compared to the corresponding period of 2023.

Labour market conditions also continued to improve in the first half of 2024, as the unemployment rate fell to 9.6% in June, a 15-year low.

“The budget, which returned to primary surpluses in 2023, recorded a surplus of 0.9% of GDP in the first five months of 2024, slightly higher than 0.6% in the corresponding period last year, due to higher tax revenues,” noted the EBRD.

Regarding public debt, it said it “was at 161.9% of GDP at the end of 2023, remaining the highest in Europe, but fell further that year due to high nominal GDP growth and a primary fiscal surplus.”

Inflation eased further in the first half of 2024 (to 3% year-on-year on average), but core inflation remained relatively high and persistent (3.3% in June 2024).