Central bank expects growth to pick up in 2024 and ’25
Τhe Bank of Greece predicts an acceleration of the growth rate of the Greek economy for 2024 and 2025, followed by a slight decline in 2026.
In a report titled “Note on the Greek economy” published on Friday, the growth rate in 2023 is expected to come to 2.4%, accelerating marginally to 2.5% in 2024 and 2025, before dropping down to 2.3% in 2026.
The main driving forces of activity in the coming years will continue to be investment and private consumption, while the contribution of the external sector will be marginally negative.
Monetary policy will continue to be restrictive for some time, while public investments will contribute positively to growth thanks to the funds of the Recovery and Resilience Facility (RRF).
Private consumption will increase by 2% on average during the projection period. It will be supported by strong real household disposable income as employment continues to recover and inflation eases.
Public consumption will have a marginally negative effect.
Investment will continue to grow at a high rate throughout the projection period, supported by available European resources. The high investment growth rates reflect the improvement in the economic climate.
