
UniCredit projects Greece will achieve its inflation target of 2% in 2024, aligning with the European Central Bank’s goal, compared to the 2.5% forecast for the Eurozone, in a report.
Despite its investments in Greece via Alpha Bank, however, the Italian banking group remains cautious about the Greek economy’s outlook for 2024. In contrast to analysts’ and institutions’ estimates, which project Greek growth above 2%, the Italian bank anticipates a mere 1.3% increase in GDP for 2024, down from 2.3% in the current year, with a slight improvement to 1.7% in 2025.
The Italian bank stressed that concerns may arise as the Consumer Price Index is expected to decline to 1.6% in Greece in 2025, considering that the Greek GDP heavily relies on consumption.
These projections, while higher than the meager +0.5 percent predicted for the Eurozone’s GDP in the coming year, are attributed to restrictive monetary policies, stricter fiscal stances, and the weakening resilience of the labor market.
ECB’s Policy Implications and Economic Risks
UniCredit emphasizes the critical role inflation will play in the Eurozone in the coming year, confirming that structural inflation can approach 2% by the end of 2024 and dip below that level in 2025.
UniCredit also predicts that reinvestments under the PEPP program (Pandemic Emergency Purchase Programme) will continue in full until the end of 2024.
For the Eurozone’s economic trajectory, UniCredit forecasts a 0.5 percent increase in GDP in 2024, the same rate as the current year. Research indicators suggest that GDP will either remain stagnant or experience moderate contraction in the fourth quarter of 2023.
Regarding potential challenges affecting the economy, UniCredit anticipates these difficulties to persist in 2024. The transmission of aggressive interest rate hikes by the ECB continues in a period where household savings have been largely depleted, fiscal policy tightens, and labor market resilience begins to wane.
Source: to vima.com


Latest News

Greece Faces Renewed Fears of Water Crisis Ahead of Summer 2025
Following a prolonged drought that began in 2024, fears of a water crisis highlight the urgent need for infrastructure improvements

Harvard, Yale, Columbia, and More Seek Collaboration with Greek Unis
Greece's former Minister of Education Kyriakos Pierrakakis announces an €82 million funding boost to support the partnerships

Greek Government Reshuffle Brings in More Young Technocrats
Greek PM Mitsotakis has brought in younger leaders and technocrats in a bid to accelerate the government's efforts at modernization and efficiency, according to New Democracy insiders

Greece’s New Government Members Sworn in at Presidential Mansion
Greece's new government members were sworn in on Saturday morning and head straight to work through the first meeting of the new cabinet.

Moody’s Upgrades Greece to Investment Grade, Ending Crisis Era
The rating agency raised Greece’s long-term credit rating to Baa3 from Ba1, with a stable outlook.

EFET on World Consumer Day: Humanity Faces New Challenges
This year’s message emphasizes the need for a transition to sustainable lifestyles while safeguarding consumers’ legally recognized rights. This means ensuring access to essential goods such as food and energy, as well as health and safety.

Athens Hotels Lead Europe in Value Growth for Third Year
Over the entire period from 2015 to 2024, the average annual increase in hotel value was 6.1%.

Unemployment Rate in Greece Down 8.9% in January: IOBE
The unemployment rate in Greece recorded a further decline in January 2025, reaching 8.9%, according to the latest Foundation for Economic & Industrial Research (IOBE) report.

Demand for Short Term Rentals in Greece Surges Ahead of Easter
Among the most popular Easter destinations from Good Friday to Easter Monday are Corfu, Hydra, the Peloponnese, Ioannina, Patmos, Loutra Edipsou, Kavala, Thassos, and Pelion

Opposition Reacts Strongly to Greek Government Reshuffle
PASOK's spokesperson, Kostas Tsoukalas, characterized the reshuffle as a clear indication of Mitsotakis' "strategic deadlock."