Greece’s Economy Forecasted for 2.9% Growth in 2021 Due to Strong Investments

Greece’s economy is projected to see faster growth in 2024, thanks to projections of increased tourism, higher investment, and domestic demand. The government’s final budget for 2024 shows an expected economic output increase of 2.9%, up from the 2.4% expansion projected for this year. This growth is expected to be fueled by European Union recovery funds, with Greece set to receive more than 55 billion euros from EU structural and recovery funds by 2027.

Investment is also projected to grow by about 15.1% in 2024, more than double compared with the current year. With Greece regaining investment grade status for its debt, the economy is strengthening and attracting investment. The budget includes plans for public asset sales and pay raises for civil servants and pensioners, signaling a focus on economic growth.

The country expects to achieve a primary budget surplus of 2.1% of gross domestic product in 2024, which is crucial for debt sustainability. While public debt remains high, it is anticipated to decrease from 160.3% of GDP this year to 152.3% of GDP in 2024. Greece’s strong economic performance is also evident in higher than expected tax revenues and projections for declining annual inflation rates and unemployment figures.

The government has prioritized economic growth by providing measures such as a reserve for natural disasters and raising funds from state asset sales. With the economy showing significant signs of recovery, Greece is optimistic about its financial outlook for 2024 and beyond.