Greek Economy

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As long as international markets remain anxious about bubbles in artificial intelligence and corrections in major tech companies, the Greek economy not only stays standing — it accelerates rapidly.

To be precise, it is stepping on the gas.

GROWTH

Let’s start with the most fundamental indicator: growth. For 2025, GDP growth is expected at 2%, above the eurozone average.
Meanwhile, unemployment has fallen to 8.2%, with 70,000 fewer unemployed people compared to last year.

At the same time, Greece is hitting records in investment, tourism, and consumption. Gross fixed capital formation has increased by more than 60% since 2019, bringing total investments to 15.5% of GDP — the highest level of the last decade.

And where does all this momentum come from? A large part comes from Recovery Fund resources, with more than €8.6 billion already absorbed. Investments are directed mainly toward renewable energy and digital transformation — exactly the sectors that boost productivity and competitiveness.

All of this is happening not because of luck, but because of deliberate policy choices: consistent fiscal discipline, reforms that touch the core of the state, and a banking sector that transformed from a burden into a growth engine. Reforms in taxation, public administration, and the labor market are delivering results. And this progress is not going unnoticed.

SCOPE RATINGS

Speaking of progress, just a few years ago international rating agencies saw Greece as the weak link of the eurozone. Today, Scope Ratings looks at Greece and sees stability and potential. That’s why it upgraded Greece’s outlook from “stable” to “positive,” while maintaining the investment-grade rating at “BBB.”

“And what does that mean?” you may wonder. It means increased confidence, better access to international capital, cheaper borrowing costs, and greater attractiveness to investors. And naturally, it means more stability for all of us who live, invest, or do business in Greece. The country not only presents a stable image abroad — it is now recognized as a model of economic recovery.

Scope is closely monitoring the progress of reforms, debt reduction, and fiscal discipline. The primary surplus is estimated at 3.6% for 2025, and the overall debt trajectory is steadily downward — from 145% of GDP today, targeting 122% by 2030.
At the same time, the Greek state maintains a cash buffer of €42 billion, making us more shielded than ever.

If everything continues at the same pace, 2026 could bring another upgrade. In short, the real game is just beginning.

MARKETS

Despite all these positive fundamentals, the Athens Stock Exchange has been moving downward in recent days. The General Index has fallen below 2,000 points, mainly due to external pressures and uncertainty in global markets.

At the same time, bank stocks are under pressure, even though financial results are outstanding — for example, Alpha Bank reported net profits above €700 million in the nine-month period, up 44% year-over-year.

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Posted Using INLEO