Inflation in Greece will settle at 2.5% in 2025, and stand slightly over 2% in 2026, according to a projection by the Bank of Greece (BoG). The report estimates the cost of living will record an uptick to 2.5% in 2027.
As per the BoG report, inflation in Greece measured by the Harmonized Index of Consumer Prices (HICP) is expected to gradually decline, approaching 2% by the end of 2026, although it will remain slightly above that level. However, a temporary increase to 2.5% is anticipated in 2027 due to the implementation of the ETS2 carbon trading system in the energy sector. Core inflation is projected to drop to 2.2% by 2027, mainly driven by declining inflation in industrial goods (excluding energy) and, to a lesser extent, in services.
Between 2025 and 2026, Greece’s economy is expected to grow by 2.5% and 2.3%, respectively—significantly outpacing the average growth rate of the eurozone.
Key drivers of economic activity will continue to be investment spending, supported by EU funds, and private consumption, which benefits from rising real disposable income. This increase is fueled by ongoing employment growth, higher wages amid a still-tight labor market, minimum wage hikes, and lower inflation.
Total exports of goods and services are projected to continue rising at an average annual rate of 3.8% during the 2025-2026 period.
However, the contribution of the external sector to GDP is expected to be negative in the coming years due to strong investment activity, which is anticipated to drive an increase in imports.
Source: Tovima.com
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