Greece is on a consistent path of robust growth, as highlighted in Morgan Stanley‘s Annual Economic Outlook for the rest of 2025. The analysis anticipates a gross domestic product (GDP) increase of 2.2% in 2025, slightly lower than in 2024, with a further slowdown predicted to 1.8% for 2026.
The primary catalyst for this growth is investment, spurred by the ongoing rollout of the Recovery Fund and a rising influx of foreign direct investment. Conversely, private consumption is projected to decelerate, and net exports are expected to detract from growth during the 2025-2026 period.
On the positive side, the labor market is exhibiting encouraging trends, with unemployment decreasing to 9% in March 2025—the lowest level since 2009. Sustained economic growth is likely to further lower unemployment rates, thereby reducing inactivity and boosting employment.
Regarding inflation, a decline is anticipated, with a forecast of 2.1% for 2025, down from 2.7% in 2024. However, this trend does not apply uniformly across all sectors; rental prices are surging at an annual rate of 10.5%, significantly exceeding the eurozone average of 2.9%.
Ask Me Anything
Explore Related Questions
