Greece recovering faster than expected
Greece recovering faster than expected
Greek Finance Minister Kostis Hatzidakis told Reuters that the government will maintain fiscal prudence to safeguard its growth path and emergence from a debilitating debt crisis a decade ago, even amid higher wage demands by striking teachers and ferry workers.
Tourism-dependent Greece currently is experiencing one of the highest growth rates in Europe, with the government forecasting 2.2% growth for 2024 and the IMF forecasting 2.3%. This is well above the weak overall 0.8% IMF growth forecast for the euro zone, where industrial economies including Germany and Italy are struggling.
Greece’s finance ministry has committed to early repayment of some $8 billion in bilateral debt in 2026, 2027 and 2028, estimating that this would push down the country’s debt-to-GDP ratio – Europe’s highest – from 162% this year to 149% in 2025 and 133.4% by 2028.
If it stays on that path, Greece’s debt-to-GDP ratio in 2028 would be lower than Italy’s, which Rome has forecast at 135.8% this year, rising to 137.5% in 2027.