Bank of Greece Projects 2.1% Economic Growth from 2025 to 2027, 2% in 2028
The Bank of Greece projects a steady economic growth rate of 2.1% from 2025 to 2027, followed by 2% in 2028, outpacing the eurozone average due to robust investment activity. However, significant declines in public investment are expected in 2027, alongside challenges in utilizing EU Recovery Fund resources. Average inflation is forecasted at 2.2% for 2026-2027, with potential increases in 2028 linked to energy costs from the European Emissions Trading System.
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The Bank of Greece anticipates a steady economic growth rate of 2.1% from 2025 to 2027 and 2% in 2028. The report highlights that Greece is expected to outpace the eurozone average in growth, supported by strong investment activity.
However, public investment is projected to decline significantly in 2027. The report notes that while Greece is making progress with the EU Recovery Fund, there are delays in loan agreements and grants due to administrative challenges.
Average inflation is forecasted at 2.2% for 2026-2027, with a potential rise in 2028 linked to the European Emissions Trading System (ETS2) impacting energy costs. Inflation is identified as the primary short-term policy challenge, along with the effective utilization of European funds.
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