According to the annual report released by Governor of Greece and former Minister of Finance Yannis Stournaras, Greek economic activity is forecasted to increase by 2.2% in 2024, outpacing the Eurozone average, owing to strong private consumption and investments, as well as a decline in public debt, albeit at a slower pace than previous years.

Consumer spending, exports and investments will continue to support the Greek economy well into 2025 and 2026, with future output projections reaching 2.5%. As outlined by the Bank of Greece report, primary surplus will rise to 2.1% of GDP in 2024, due to higher tax revenues and social security contributions, both direct results of the current robust economic growth rate. When it comes to challenges, upcoming key priority should be alleviating inflation, particularly in the food and services sectors, with a combination of targeted reforms and use of European funds, the report specified.

More specifically, private consumption is expected to rise by 1.7%, thanks to an increase in real disposable income, ongoing employment recovery and inflation mitigation measures. Despite some unpredictability arising from geopolitical developments, overall inflation projections show a drop to 2.8%. Another significant milestone in the report is that public debt will decrease in nominal terms for the first time since 2019.