The Greek economy is projected to grow by 2.3% in 2025, according to the Bank of Greece (BoG). Looking ahead, the economy is expected to converge towards Europe’s potential growth rate, as outlined in the latest Note on the Greek Economy.
This growth will be mainly driven by private consumption and investments, supported by available European funds. Additionally, inflation is expected to slow further in 2025.
According to the BoG, economic activity continued to expand at a satisfactory pace in 2024, with a growth rate of 2.3%, surpassing the average growth of the eurozone.
Inflation sharply declined from its peak in 2022, due to falling energy prices in 2023. However, it remained relatively high at 3% in 2024, primarily due to persistent increases in service prices. In March 2025, inflation slightly rose to 3.1%, driven by a significant increase in inflation for unprocessed food.
In the housing market, apartment prices continued to rise at a strong, albeit slowing, pace throughout 2024. Labor market conditions remained positive in the early months of 2025, with employment increasing and unemployment continuing to fall.
The current account deficit worsened in 2024, increasing by 1.3 billion euros year-on-year, following a significant reduction in 2023. In January 2025, the current account surplus shrank by 0.8 billion euros.
Credit expansion to businesses accelerated significantly in 2024 and into early 2025, in line with economic growth and falling interest rates. Deposits in the private sector continued to increase, although the annual growth rate of household deposits has slowed.
The fiscal stance in 2024 was mildly restrictive, but it is expected to become expansionary in 2025 and 2026 due to the implementation of the Recovery and Resilience Fund (RRF).
Finally, according to the bank the risks surrounding the growth forecast are primarily downside risks, mainly related to climate change and increased global political uncertainty, which could lead to a reduction in global trade and investment.
