The Executive Director at Goldman Sachs International, Filippo Taddei discussed trends shaping Greece and global markets in 2025, as well as trends and uncertainties, during the 4th OT Forum titled “A New Production Model – Greece 2030,” taking place on Dec. 2 and 3.
Economic Transformation
Taddei emphasized, “The economy is clearly undergoing a transformation. To predict structural changes both in the short and long term, Europe’s response to shifts compared to the U.S. serves as a useful reference point.”
Tariffs and China
The economist pointed out that European economies, including Greece, must address immediate challenges before tackling structural ones. “In recent weeks, much attention has been given to the impact of U.S. policies on Europe and how Europe will respond. In a scenario where tariffs are imposed on China, this could lead to corresponding price increases for Europe” he noted.
He further explained that this could significantly impact GDP—around 0.5%. While this percentage may seem small, it is substantial comparing it to growth rates like Italy’s 0.6% or Germany’s 0.3%, predicting that Europe is likely to respond to U.S. tariffs by raising its own prices.
He also stressed that China is a direct competitor to Europe in a number of sectors. “Many of these sectors are areas where Greece lags behind. Greece should focus on what Europe can do in sectors like IT services, financial services, and others,” he said.
Greece’s Recent Success
Taddei highlighted Greece’s achievements since the pandemic, considering them impressive compared to other European counties. He explains that for the first time in years, Greece has seen growth in its labor force, enabling higher consumption and improved wages in the future. While tourism remains vital, there is also a recovery in IT services, finance, and real estate. “These are sectors where Europe as a whole struggles, but Greece is performing better,” he said.
Fiscal Discipline and Opportunities
Addressing fiscal discipline, Taddei emphasized that Southern Europe—and Greece in particular—has a window of opportunity due to Recovery Fund resources. Greece receives 18% of these funds relative to its GDP, making it the leading beneficiary. However, he cautioned that the opportunities stemming from the funds will likely last until 2025 or 2026 but not beyond.
Investments and Future Growth
Regarding investment and future growth, Taddei remarked, “Few European countries understand the importance of investment as well as Greece. Before the debt crisis, investment was abundant. The subsequent decline was unprecedented. However, there has been a turnaround since the pandemic.”
He added, “Europe provides fiscal space, and there is a sense that Greece’s economic model can be based on more than services and tourism.”
Taddei concluded by emphasizing the importance of seizing the current opportunities to ensure long-term stability and growth for Greece.
