Greece’s economy is projected to experience steady growth in the coming years, with an anticipated growth rate of 2% in 2024 and 2.5% in 2025. This growth is fueled by a number of factors, including rising employment rates, increasing real wages, and a robust tourism industry that is driving consumption. Despite a slowdown in new job creation, the employment rate and labor force shortages are at historically high levels.
Inflation in Greece is expected to continue declining at a slower pace, with forecasted easing to 2.1% in the last quarter of 2025. The report also predicts that Greece will achieve a primary surplus of 1.8% of GDP in 2024 and 2.1% in 2025 as efforts to reduce public debt are showing progress. Public debt is estimated to decrease from 161% of GDP in 2023 to 151% in 2025, thanks to economic growth and improved tax collection boosting public revenues.
The OECD has highlighted several challenges that Greece must address if it wants to sustainably reduce its debt levels while investing in key areas like infrastructure, responding to demographic shifts, and addressing climate change. Increasing productivity levels, which currently lag behind OECD averages, will create more fiscal space and improve living standards for Greeks.