In 2024, the Greek economy continued its growth path, despite the uncertainties in the international environment.

In the first nine months of 2024, real GDP grew by 2.3% year-on-year, a rate significantly higher than the Eurozone average (0.6%).

According to the available data, short-term indicators of economic activity and expectations indicate that the Greek economy will maintain its growth momentum in the medium term, at a steady rate close to 2%. Characteristically, the Economic Climate Index remains higher than the Eurozone average and is based on strengthening business expectations.

The unemployment rate maintains a downward trend, with employment growth as the main driver. This trend, according to the Employment Expectations Index, is expected to continue in the medium term, while boosting total household disposable income and consumption. Nevertheless, a fundamental condition for the formation of a sustainable labor market is the gradual increase of the participation rate of the population in the labor force, that is to achieve a greater influx and retention of people in the labor force. It is noted that, in 2023, this percentage in Greece will be 52% compared to 58% in the Eurozone.

The inflationary pressures of the previous years are gradually receding and the general index stands at 2.8% (Jan-Nov. 2024). However, since the middle of the year, the divergence between national and structural inflation has been significant, highlighting the impact of the services sector on the overall picture of rising living costs faced by consumers.

Private consumption remains the main component of GDP and growth, and we believe it will continue to play a key role. However, we must not overlook that the development perspective of the Greek economy depends on the utilization of European and national funds for the implementation of investment plans and the stimulation of entrepreneurship. This development will have a double effect: on the one hand, the value of the investment will “count” in the GDP and mathematically improve the growth rate, and on the other hand, in the long term, it will have a multiplier effect, supporting new jobs and the productivity of fixed capital. By 2027, the country will have secured approximately €78.6 billion. from European Union agencies and approximately another €17 billion. from national resources. Investments are expected to accelerate in the coming years, taking into account the maturation of investment plans and projects implemented under the RRF. However, the goal should be the rapid increase in the ratio of fixed capital investments to GDP (15% of GDP) and the convergence towards the Eurozone average (22% of GDP) but also the reduction of the investment gap and the obsolescence of factory equipment created during the financial crisis.