The Greek economy remains, led by good fiscal performance, island of stability in an ever -changing international environment.

The dedication to the rapid application of reforms and stimulating productive investment are critical factors for the growth rate of the economy growth in the future. This is pointed out, as key conclusions, the State Budget Office in Parliament, in its quarterly report that it has published today.

In inflation bell, however, he said that efforts to boost competition, as well as the detection and preventing pricing in oligopolistic markets, should be intensified. While it puts a rapid reduction in public debt as a first priority, as there are favorable conditions through the development, continuing expansion of the tax base and the possibility of early repayment of the most expensive loans in the official sector.

According to the report, amidst conditions of commercial and economic uncertainty and with geopolitical tensions still plaguing the global economy, the European Union is called upon to make quick and brave decisions to ensure its strategic autonomy and energy security and at the same time to strengthen its productive potential.

The Greek economy remains, led by good fiscal performance, island of stability in an ever -changing international environment. Growth still exceeds the European average by contributing to the convergence of income. The dedication to the rapid application of reforms and stimulating productive investment are critical factors for the growth rate of the economy growth in the future.

The Office sets the rapid reduction in public debt as a first priority as there are favorable conditions through development, continuing expansion of the tax base and the possibility of early repayment of the most expensive loans in the official sector. The reduction in debt to GDP, which is the largest in the eurozone and is a factor that makes it difficult for the growth dynamics of the economy, will lead to faster upgrades of the Greek State’s debtor and can release fiscal space for new interventions in the future.

The gross domestic product (GDP) increased 1.7% in the second quarter of 2025 compared to the second quarter of 2024, according to ELSTAT temporary data, while the size in the eurozone is 1.5%. In this performance, private consumption increased (1.1%), the increase in exports of goods and services (1.9% in total, 3.9% for services and -1.1% for goods) and the increase in public consumption (0.7%). Fixed capital investments increased by 6.5% with an increase in all components.

The contribution of the reduction in imports of goods and services (a decrease of 3.2% in total, 1.5% for services and -4.8% for goods). The basic estimate of the office for GDP growth of 2025 remains at 2.2%.

Based on the report, inflation (annual percentage change in the harmonized consumer price index) reached 3.1% in August 2025 and is still well above average inflation in the eurozone (2%). Higher inflation in our country compared to the European average makes it difficult for international competitiveness over our partners.

According to ELSTAT data, its size was declined compared to the previous month (3.7%) and is marginally lower than August 2024 (3.2%). The upward pressure on prices are resulted in by the services, including housing, and food inflation has also been enhanced. Efforts to strengthen competition as well as the detection and preventing pricing in oligopoly markets should be intensified.

In terms of fiscal performance, for the seven months of January-July 2025, the consolidated primary outcome of a general government with adjustments records a surplus of € 9,227 billion, increased by EUR 2,732 billion compared to the corresponding 7 months of 2024. billion euros compared to January-July 2024.

Tax revenue shows a significant increase, with the main sources being € 2,643 billion in income tax, and VAT revenue by € 1,123 billion. The state budget spending shows an increase of EUR 1.359 billion compared to the seven months of January-July 2024, which is attributed to the increase in primary spending by EUR 1,301 billion.

Remarkable, according to the report, are the following two developments. The first concerns the acquisition of HELEX by Euronext. For the Greek capital market, the agreement is expected to bring significant benefits as the Greek Stock Exchange will join a network of listed companies with high total capitalization, enhancing the “depth” of the Greek capital market and the access of Greek businesses to international capital. Also, the current account balance, although a significant deficit, in January-July 2025, showed an improvement of EUR 1.4 billion compared to the corresponding period of 2024.

At the same time, it is noted that the recent political instability in France, which could be an example of a case study of the impact of political uncertainty on increasing economic uncertainty as reflected in the cost of lending to that country on government bond markets.

For Greece, political instability in France also has the following reading. Events of a short -term increase in uncertainty in other countries (such as political instability in France) or a prudent domestic fiscal policy in long -term horizon (such as, for example, the rapid reduction of public debt we mentioned as priority above) shifts more favorable to Greek and other Greek returns, “Look” of bond markets.

This is true. A non -prudent domestic fiscal policy will increase the yields of government bonds, bring the country closer to this field of view of international markets, and slow down investment. The above, based on the office report (March 2025) for the time of recovery of the capital stock, will lead to the extension of the return time of the capital stock to the pre -crisis level.

Improving the relevant position of Greek bonds, the report concludes, can enhance the country’s attractiveness to investors looking for lower risk returns, which can boost capital inflows and foreign investment. In addition, falling yields means cheaper debt refinance.

Presenting the quarterly exhibition, GPKB leader Ioannis Tsoukalas emphasized the following:

*Among the positive factors that support growth in Greece are the prolonged extension of the tourist year, the expansion of the tax base, as well as the “package” of the measures announced by the prime minister at the TIF. The negative factors record prolonged uncertainty in international energy markets, the rise of interest rates, high public debt, delays in the administration of justice, public administration and education.

*Inflation moves to a higher level than the average index in the eurozone, and there is concern for rejuvenation due to pricing on wide consumption products such as meats.

*Citizens’ purchasing power is significantly short (it is about 70% of the eurozone average) and will spend many years (even a decade) for convergence and provided that the Greek economy will achieve growth rates of more than 2%. The “key” is to boost productivity and the extroversion of the economy.

*The housing issue requires faster solutions and not delays in the implementation of measures, without ignoring the time of maturity of the measures. Intensive renovations loans would help to normalize the problem.

*The so -called “VAT VAT” will be further reduced and if not this year, it will fall from 10% in 2024 from the following year, near the average of the eurozone (about 5%). In 2025, revenue from the restriction on VAT losses and the formation of a payment culture will generate additional revenue of € 1 billion.

*Increasing revenue and fiscal space does not automatically mean new income support measures. A key element is permanent revenue. In this case, additional interventions could be made to further normalize the tax scale with new rates reductions.

*Businesses do not need a further reduction in the tax rate (22%), as they are one of the lowest in the eurozone. The reduction of rates, after all, does not mean an increase in investment. Tax relief should be for investment depreciation.