OR Greek economy seems to keep the dynamic growth and in 2025, according to the forecasts of the Bank of Greece published yesterday (30.05.2025).
Specifically, the country’s GDP is expected to increase by 2.3%, exceeding the eurozone average. The main levers of this growth will be private consumption and investment, which are significantly boosted by European funds, reflecting efforts to upgrade activity in the Greek economy.
The report also records inflation reduction, with the harmonized consumer price index falling to 2.6% in April 2025, from 3.1% in March. This declining is mainly due to the reduction of energy prices and processed foods, factors that had risen the cost of living in the past months.
In the labor market, employment increased 0.1% on an annual basis, while the unemployment rate fell to 8.3%, the lowest of recent years. This reflects the positive impact of economic recovery and investment on the domestic market.
In the fiscal field, the primary surplus for January-April 2025 amounted to 2.1% of GDP, exceeding budget forecasts. Public debt declined significantly, reaching 153.6% of GDP in 2024, mainly thanks to early repayment of liabilities and strong growth of the economy.
Challenges and risks
However, the picture is not without challenges. The current account balance exhibited the deficit expansion in the first quarter of 2025, as a result of the deterioration of the balance of goods and services. External imbalances are a reminder of the need to enhance the competitiveness and extroversion of the Greek economy.
The Bank of Greece report points to climate change and increased uncertainty in global commercial policies as the main downward dangers. These factors could limit the country’s growth potential, underlining the need for prudent fiscal policy and continuous reforms.
The Greek economy, despite the challenges, continues to grow at a positive pace. In 2025 it is erased as a year with strong perspectives, as long as the external dangers are successfully tackled and maintain the reform momentum.