10/18/2024
Greece’s economy has been showing steady growth in recent years, and forecasts suggest that this trend will continue in the near future. The country is gaining attention from both investors and people considering relocation, thanks to stable macroeconomic indicators and growing business opportunities. In 2024, GDP growth is expected to reach 2.5%, followed by 2.6% in 2025. This outlook reflects the positive changes happening within the Greek economy.
Growth in Private Consumption
One of the key drivers of Greece’s economic growth is the increase in private consumption. It is forecasted that household incomes will continue to rise, boosting consumer purchasing power. At the same time, inflation is expected to decrease, creating more favorable conditions for businesses and everyday life. This rise in living standards and consumer activity could serve as a catalyst for the development of new markets and the strengthening of existing economic sectors.
For those considering Greece as a new place to live or do business, these are positive signals. High levels of consumption offer additional opportunities for trade, manufacturing, and services, making the country an attractive option for entrepreneurs.
Increase in Private Investments
Another major engine of economic growth is the rise in private investments. It is expected that investments will grow by 9.1% in 2024 and 14.4% in 2025. These numbers are driven by access to funds from the Recovery and Resilience Facility, which supports the post-crisis economy, as well as lower interest rates. More affordable loans and financing options provide investors with the necessary capital to fund their projects. The real estate market, in particular, continues to attract both foreign and local investors.
Additionally, Greece is actively working to close the investment gap with the rest of the eurozone. By 2025, investments are expected to account for 17% of the country’s GDP, bringing it closer to the eurozone average of 22%. This indicates that Greece is taking confident steps towards sustainable development and is becoming more competitive on the international stage.
Reduction of Public Debt
Public debt is a key indicator affecting a country’s financial stability. Greece is making significant efforts to reduce its debt. By 2025, the public debt level is expected to decrease to 146.3% of GDP. Although this figure remains high, the reduction demonstrates gradual improvements in the nation’s financial situation. This is a crucial aspect for investors, as the stability of public debt directly impacts the country's attractiveness for investments and the overall confidence in its economy.
Forecast and Outlook
In the coming years, Greece is expected to continue its path of sustainable economic growth. The improvement of macroeconomic indicators, the rise in investments and private consumption, alongside declining inflation and public debt, provide a solid foundation for business development and improving living standards. This makes the country attractive not only to tourists but also to those planning to start a business or invest in real estate.
For investors, Greece offers unique opportunities as it gradually closes the gap with the economies of leading eurozone countries. The country is becoming increasingly competitive and open to business activities, making it a promising destination for long-term investments.