
Economic growth in Greece is set to accelerate, according to BMI Research, a subsidiary of Fitch Solutions, as the firm raised its estimate from its initial 1.6% forecast for 2024 to 2.4%, noting that consumption and investments, aided by the financing from the EU’s Recovery Resilience Fund, will be the driving forces behind the expansion.
As the research firm explained, Greece’s GDP expanded by 0.2% in the fourth quarter of 2023, following a 0.1% contraction in the third quarter, resulting in an annual growth rate of 2% for 2023 (BMI forecast: 1.9%). In this context, it raised its growth forecast for 2024 from 1.6% to 2.4%, as key growth drivers exceeded expectations.
The increase in private consumption accelerated faster than anticipated, rising by 1.4% quarterly in the last quarter of 2023, while exports also provided an upward surprise, recording a 0.4% increase (compared to BMI’s expectations for a contraction).
Comparatively better prospects for exports are one of the main factors behind the upward revision of Greece’s growth prospects for 2024, as the mild growth in the eurozone was expected to be the most significant brake on production, explains BMI.
The Role of Private Consumption
Private consumption will add 1.4 percentage points to growth in 2024 and 3.3 percentage points in 2025, as disposable income is boosted by increases in business wages and the decline in inflation.
Inflation has de-escalated significantly during 2023, dropping from a peak of 12.1% in September 2022 to 3.2% in February 2024.
Source: tovima.com


Latest News

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."

Greece’s Economy Awaits Moody’s Verdict on Investment-Grade Rating
The stock market has reflected strong performance, with the general index showing resilience and a lack of inward-looking caution.

Greek PM Reshuffles Cabinet after No-Confidence Vote
The most notable changes in the Greek cabinet reshuffle include Kostis Hatzidakis being appointed Deputy Prime Minister and Kyriakos Pierrakakis taking over as Minister of National Economy and Finance.

Mitsotakis: Greece-Israel Strategic Ties Increase Stability in East Med
Greek Prime Minister Kyriakos Mitsotakis made the statement in welcoming Israeli Foreign Minister Gideon Sa'ar to his office on Thursday

Conference Tourism in Greece Targets €6-7BLN
Currently, the Greek conference tourism generates €2 billion in revenue, ranking 47th globally in terms of total turnover in the international conference industry

Greece 2nd Last in Employment Prospects in EU: ManpowerGroup Report
Contrary to the global average, Greece’s employment prospects are strongest in the consumer goods and services sector

Greece Returns to Markets Reopening 15- and 30-Year Bonds
Pricing of the new bonds is expected to be finalized today, March 13, with settlement anticipated on March 20

Research in Greece : Wasted Talent, Missed Opportunities
The symposium made one thing clear: Greece possesses the intellectual capital to compete globally, but without decisive policy reforms, its research potential will continue to be squandered.

Greek Education Ministry to Launch Free Audiobook App eVivlio
The eVivlio app offers free access to audiobooks by Greek and international authors, narrated by well-known actors.