The Greek government has unveiled its economic projections for 2025, anticipating a growth rate of 2.3%, which would surpass the performance of major European economies. This forecast, outlined in a recently released draft budget, reflects the country's ongoing recovery from its debt crisis and its efforts to strengthen its economic position within the European Union.
Greece, which joined the EU in 1981, has faced significant economic challenges in recent years. The country experienced a severe debt crisis beginning in 2009, which nearly resulted in its exit from the eurozone in 2015. However, since emerging from its final bailout program in 2018, Greece has made substantial progress in stabilizing its economy and regaining investor confidence.
The projected growth for 2025 is attributed to several key factors:
- Robust tourism revenues
- Strong consumer spending
- Increased investment
Tourism, which contributes approximately 20% to Greece's GDP, plays a crucial role in the country's economic recovery. With over 6,000 islands and islets, and attractions like the Acropolis in Athens, Greece remains a popular destination for international travelers.
The government's economic strategy also includes measures to support vulnerable households and increase pensions. These initiatives will be funded through a combination of higher spending, estimated at about 3.5 billion euros, and tax breaks. To maintain fiscal responsibility, Greece aims to achieve a primary budget surplus of 2.5% of GDP in 2025, up from 2.4% in the current year.
Despite these positive projections, the draft budget acknowledges potential risks to economic growth, including:
- Ongoing conflicts in Ukraine and the Middle East
- Possible new geopolitical tensions
- Stagnation in the broader European economy
It's worth noting that more than half of foreign direct investment in Greece originates from northern European countries, while two-thirds of the country's exports, including agricultural goods, fuel, and pharmaceutical products, are destined for EU markets.
While Greece has made significant strides in its economic recovery, challenges remain. The unemployment rate stands at 10%, and the average monthly salary is still 20% lower than it was 15 years ago. However, the country has regained its investment-grade ratings and has successfully relied on debt markets for its borrowing needs since 2018.
Greece's economic resilience is further demonstrated by its diverse industries. The country controls 16% of the world's total merchant fleet, making shipping a major contributor to its economy. Additionally, the Port of Piraeus has become one of the largest ports in Europe, further solidifying Greece's position in global trade.
As Greece continues to navigate its economic recovery, the government's focus on reducing public debt remains a priority. The draft budget projects a decrease in public debt from 153.7% of GDP in the current year to 149.1% in 2025. This commitment to fiscal responsibility, combined with strategic investments and support for key industries, positions Greece for continued growth in the coming years.
"Our 2025 economic forecast demonstrates Greece's resilience and potential for growth. While we remain cautious about external factors, we are confident in our ability to outperform major European economies and continue our path of fiscal responsibility and economic development."