The Bank of Greece (BoG) forecasts the Greek economy will grow 2.5% in 2025 and 2.3% in 2026, driven by investments, private consumption, and rising employment.
In its report released Friday, the BoG said EU-funded investments and increased private consumption, fueled by rising real disposable income, will drive economic activity.
Private demand will also be boosted by higher employment, wage increases, and a higher minimum wage, along with easing inflation.
The public debt-to-GDP ratio is projected to fall below 150% by 2025, aided by primary budget surpluses.
This is expected to increase investor confidence and lead to credit rating upgrades.
Exports are projected to grow 3.8% on average in 2025-2026.
However, the external sector's contribution to GDP is expected to be negative due to increased imports driven by investment activity.
Inflation is expected to ease to around 2% by the end of 2026, rising temporarily to 2.5% in 2027 due to the implementation of the ETS2 energy scheme.
Core inflation is forecast to decline to 2.2% by 2027.