Greece’s economy is expected to experience a significant surge in growth in 2024, thanks to the government’s projections of increased tourism, higher investment, and domestic demand. The final budget for 2024 shows an anticipated increase in economic output of 2.9%, up from the 2.4% expansion projected for this year. This growth is expected to be fueled by European Union recovery funds, with Greece set to receive more than 55 billion euros from EU structural and recovery funds by 2027.
In addition to the influx of funds, investment is projected to grow by approximately 15.1% in 2024, more than double compared with the current year. Greece’s regaining of investment grade status for its debt is attracting investment and strengthening its economy. There are plans for public asset sales, and the budget also includes pay raises for civil servants and pensioners.
Greece expects to achieve a primary budget surplus of 2.1% of gross domestic product in 2024, which is essential for debt sustainability. While public debt remains high, it is anticipated to decrease from 160.3% of GDP this year to 152.3% of GDP in 2024. The country’s strong economic performance is also evident in higher than expected tax revenues and projections for declining annual inflation rates and unemployment figures.
The government has prioritized economic growth, providing for measures such as a reserve for natural disasters and raising funds from state asset sales. With the economy showing significant signs of recovery, Greece is optimistic about its financial outlook for 2024 and beyond.