site.btaGreek Central Bank Puts Country's Economic Growth at 2.4% in 2023 and 2.5% in 2024 and 2025

The Bank of Greece estimates that the country's economy grew by 2.4% in 2023 and the growth rate will rise somewhat to 2.5% in 2024 and 2025 before it slows to 2.3% in 2026, the ANA-MPA news agency says.

According to a report on the Greek economy, published on March 1, investment and private consumption will remain the principal drivers of the national economy in the next few years, while the contribution of the external sector will be moderately negative. The monetary policy will remain restrictive for some time, but government investment will contribute positively to growth thanks to funding from the EU Recovery and Resilience Facility (RRF).

Unemployment in Greece is estimated at 11.1% in 2023 (annual average) and is forecast to fall gradually to 8.2% by 2026. This shows that economic activity will continue to recover.

The inflation average was 4.2% in 2023 compared with 9.3% in 2022, reflecting mainly a major drop in energy prices (-13.5%). Inflation is expected to decrease further in 2024, 2025 and 2026.

Growth risks have to do with a worsening geopolitical situation in Ukraine and the Middle East, which would affect the international economic environment, a lower-than-expected absorption of RRF funding, and slowing domestic reforms. Growth opportunities may improve if the global economic environment gets better, the Bank of Greece report says.