Greece is expected to experience faster economic growth in 2024, thanks to projections of increased tourism, higher investment, and domestic demand. The government’s final budget for 2024 shows an expected increase in economic output of 2.9%, up from the projected expansion of 2.4% for this year. This growth is expected to be driven by European Union recovery funds, with Greece set to receive more than 55 billion euros from EU structural and recovery funds by 2027.
One of the key factors contributing to this growth is the regaining of investment grade status for its debt, which has attracted more investment into the country. Additionally, there are plans for public asset sales and pay raises for civil servants and pensioners. Investment is projected to grow by about 15.1% in 2024, more than double compared with the current year.
Another important factor driving growth is a primary budget surplus of 2.1% of gross domestic product in 2024, which will be crucial for debt sustainability. While public debt remains high at 160.3% of GDP this year, it is anticipated to decrease to 152.3% of GDP in 2024 due to Greece’s strong economic performance. This strong 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 these factors coming together, Greece remains optimistic about its financial outlook for the future and beyond