Greece’s economy is set to experience a surge in growth in 2024, driven by projections of increased tourism, higher investment, and domestic demand. The government’s final budget for the year forecasts an increase in economic output of 2.9%, up from the projected 2.4% expansion for this year. This growth is expected to be bolstered by European Union recovery funds, with Greece expected to receive over 55 billion euros from EU structural and recovery funds by 2027.
In addition to the influx of funds, investment in Greece is projected to grow by around 15.1% in 2024, more than double the current rate. The country has regained investment grade status for its debt, which is a strong indication of its strengthening economy and attractiveness to investors. The budget also includes measures such as public asset sales and pay raises for civil servants and pensioners, further boosting economic growth.
The government is targeting a primary budget surplus of 2.1% of GDP in 2024, which is crucial for debt sustainability. While public debt remains high at 160.3% of GDP this year, it is projected to decrease to 152.3% of GDP in 2024 due to strong economic performance. Other positive indicators include higher than expected tax revenues and projections for declining annual inflation rates and unemployment figures.
Overall, Greece’s government has prioritized economic growth through measures such as disaster reserves and state asset sales, which are helping to fuel its recovery from the pandemic’s impact on its economy. With these factors coming together, Greece remains optimistic about its financial outlook for 2024 and beyond