Growth reached 2.3% in 2024

The economic growth rate of 2024 was 2.3%, slightly higher than the 2025 budget estimate for 2.2%, according to the Hellenic Statistical Authority (ELSTAT). Consumption was its consistent leader, while investments grew in the fourth quarter, mainly thanks to the restart of construction.

The 2.3% rate is more than twice the estimated European Union growth (1%) and that of the eurozone (0.9%), according to figures published by Eurostat on Friday. Based on those data, on an annual basis, only seven countries have a higher growth rate than Greece.

According to ELSTAT, the Greek gross domestic product increased by 2.6% in the fourth quarter of 2024 on an annual basis and by 0.9% compared to the third quarter.

Gross fixed capital investments increased 9% compared to the same period of the previous year, raising the average of the year. According to the National Bank analysis, this increase in the quarter is the result of a high increase in housing investment (29.1%) and other construction (11.8%), after relatively poor performance in the previous nine months.

Therefore, investment throughout the year increased by 4.5%, against a budget forecast for 6.7%. A year ago, of course, the 2024 budget had provided for an increase of 15.1% in 2024, so the final result was below one third of the original forecast.

Household consumer spending in real terms increased by 2.1% and as consumption is almost 70% of GDP, it has largely supported the growth rate. However, this fourth quarter slowed to 0.9%, probably due to the end of the tourism season. This, according to analysts, may indicate that tourism revenue is underestimated, as part of it is recorded in consumption.

Exports of goods and services increased by 1% thanks to tourism, to a large extent, while imports increased by 5.5%. Therefore, net exports, as National Bank points out in its analysis, have erased two percentage points from the annual GDP increase.

GDP at current prices reached 237.6 billion euros, compared to €225.2 billion in 2023, up 5.5%. In terms of volume, it reached €201.5 billion, compared to €197 billion in 2023, up by 2.3%.

Source: pagenews.gr