• Wed. Nov 29th, 2023

Greece’s Economy Forecasted for 2.9% Growth in Next Year due to Strong Investments


Nov 21, 2023

Greece’s economy is projected to see faster growth in 2024, thanks to increased tourism, higher investment, and domestic demand. The government’s final budget for the year shows an expected output increase of 2.9%, up from the 2.4% expansion projected for this year. This growth is expected to be fueled by European Union recovery funds, with Greece set to receive more than €55 billion from EU structural and recovery funds by 2027.

Investment is projected to grow by about 15.1% in 2024, more than double compared with the current year. Greece has regained investment grade status for its debt, which has strengthened the economy and attracted investment. There are plans for public asset sales, and the budget also includes pay raises for civil servants and pensioners.

The country expects to achieve a primary budget surplus of 2.1% of GDP in 2024, which is crucial for debt sustainability. While public debt remains high at around €317 billion (or approximately 160% of GDP), it is anticipated to decrease slightly from this year’s level of €318 billion (or approximately 160% of GDP) to €315 billion (or approximately 152% of GDP) in 2024. Greece’s strong economic performance is also evident in higher than expected tax revenues and projections for declining annual inflation rates and unemployment figures.

The government has prioritized economic growth by providing measures such as a reserve for natural disasters and raising funds through state asset sales. With the economy showing significant signs of recovery, Greece is optimistic about its financial outlook for 2024 and beyond.

Overall, Greece’s prospects look promising as it continues on its path towards economic recovery and growth following several years of recession caused by the global financial crisis and subsequent debt crisis.

Greece’s revitalized economy is expected to see a boost in tourism thanks to increased marketing efforts aimed at attracting visitors from around the world.

In addition to increased tourism, higher investment is also expected to contribute significantly to Greece’s economic growth in the coming years.

Despite ongoing challenges related to high levels of public debt, Greece’s government has made significant strides towards improving its financial situation through fiscal discipline and structural reforms.

As a result, Greek businesses are experiencing increasing confidence in their ability to expand operations and invest in new projects.

With continued support from EU recovery funds and other initiatives aimed at stimulating economic growth, Greece remains optimistic about its future prospects as it seeks to build on its progress towards a brighter future for both its people and its economy.

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