Greece’s Budget Forecasts 2.4% Growth, Debt Reduction

The nationalist debt-to-GDP ratio is projected to plummet to 137.6% successful 2026 (down from 145.4% successful 2025). Credit: Greek Presidency

The authorities successful Greece submitted its 2026 draught fund program to parliament connected Monday, successful which it forecasts economical maturation of 2.4% successful 2026 – outperforming Europe’s large economies – owed to higher investments, beardown tourism receipts and home demand.

The astir striking diagnostic of the caller fund is its assertive propulsion for fiscal independence, moving further distant from the situation era:

The nationalist debt-to-GDP ratio is projected to plummet to 137.6% successful 2026 (down from 145.4% successful 2025). This milestone fig is little than the 147.8% recorded successful 2010 erstwhile Greece was forced to question its archetypal planetary bailout.

Utilizing superior surpluses and currency reserves, the authorities is committed to the aboriginal repayment of loans from the archetypal bailout—the Greek Loan Facility (GLF) bilateral loans—to afloat settee these debts earlier their 2031 deadline.

This assertive strategy is underpinned by continued fiscal discipline, maintaining precocious superior surpluses and reinforcing planetary capitalist confidence.

The motor of maturation successful Greece

Presenting the draught fund successful Parliament connected Monday, Economy and Finance Minister Kyriakos Pierrakakis confirmed that the projected maturation volition beryllium fueled by:

• Investment Boom: Total investments are acceptable to surge by 10.2%, up sharply from 5.7% successful 2025, signaling precocious concern assurance and superior injection.
• Historic Low Unemployment: The fund projects the unemployment complaint volition autumn to 8.6%, the lowest level achieved since the 2008 fiscal crisis.
• Stable Pricing: Inflation is expected to easiness to 2.2 percent connected average, from 2.6 percent this twelvemonth and 2.7 percent successful 2024, portion unemployment is projected to autumn to 8.6 percent, from 9.1 percent this twelvemonth and 10.1 percent past year.