• Tue. Dec 5th, 2023

Greece’s Economy Forecasted for 2.9% Growth in 2021 Due to Strong Investments


Nov 21, 2023

Greece’s economy is projected to see a significant boost in growth in 2024, thanks to a combination of factors such as increased tourism, higher investment, and domestic demand. The government’s final budget for 2024 shows an expected output increase 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 from EU structural and recovery funds by 2027.

Investment is also projected to grow significantly in 2024, with an anticipated increase of around 15.1%. This represents more than double the growth rate compared to the current year. With Greece regaining investment grade status for its debt, the economy is strengthening and attracting investment from both domestic and international sources. There are plans for public asset sales, and the budget also includes pay raises for civil servants and pensioners.

The government has also set ambitious targets for reducing public debt, with a primary budget surplus of 2.1% of GDP projected for 2024. While public debt remains high at around 160.3% of GDP this year, it is expected to decrease slightly to around 152.3% of GDP by 2024. This reflects the government’s commitment to debt sustainability and its efforts to reduce its financial deficit over time.

Greece’s strong economic performance is also evident in other areas such as tax revenues and projections for declining annual inflation rates and unemployment figures. Despite facing many challenges in recent years, Greece has shown remarkable resilience and has made significant progress towards restoring its economy to health. With continued reforms and investments in key sectors such as tourism, technology, and infrastructure, Greece remains optimistic about its financial outlook for the future.

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