The Greek economy continues to establish a stable environment of economic and political stability, as highlighted in the March 2025 Quarterly Review by the Budget Office of the State in Parliament (GPC). In the fourth quarter of 2024, the positive momentum of macroeconomic and fiscal aggregates persisted, driven by increased investments, productivity growth, and accelerated structural reforms.
In 2024, the Greek economy recorded a growth rate of 2.3%, more than double the Eurozone average, while the fourth quarter of the year saw a 2.6% increase compared to the same period in 2023. This significant performance was supported by a 3.6% increase in the exports of goods and services (with services increasing by 5.9% and goods by 1.6%), as well as a 9.0% rise in total fixed capital investment.
Conversely, private consumption showed a slight slowdown, with a growth rate of 0.8% in the fourth quarter of 2024. However, on an annual basis, it is estimated to maintain positive momentum with a 2.1% increase. The growth was negatively impacted by a 3.4% decrease in public consumption and a 2.4% increase in imports of goods and services.
Moreover, the upgrade of Greece’s credit rating to investment grade by Moody’s, following upgrades from Scope and DBRS, signals a further step toward improving the financing conditions of the Greek economy. This development enhances the country's credibility in international markets, facilitating investment flows and creating a positive environment for economic activity.
Despite these positive developments, the Report emphasizes that the current account balance deteriorated in 2024, highlighting the urgent need to support high-value-added export sectors and further enhance reforms. The convergence of citizens' real income with the Eurozone average remains a central goal of economic policy.
On a global scale, the economy faces increased uncertainties due to tensions in trade relations between the US, the EU, and China, as well as geopolitical tensions. Protective policies and tariffs threaten international trade, while disruptions in supply chains intensify inflationary pressures.
In this context, the European Council has agreed to enhance the EU’s defense autonomy, approving a defense spending package of 800 billion euros over the next four years, partially funded through European borrowing of 150 billion euros from the SAFE tool. Additionally, the historic agreement in the German Parliament to relax the debt brake signifies a significant fiscal expansion of 500 billion euros, potentially having positive effects on both the European and Greek economies.
The GPC Report also highlights potential impacts from the new US tariff policy on Greek exports of steel and aluminum. Drawing from previous experience with the imposition of tariffs—25% on steel and 10% on aluminum in 2018—it notes that Greek exports of steel and iron to the US were negatively affected at that time, while aluminum exports remained unaffected. Furthermore, the new tariff policy may also impact Greek exports of intermediate goods to the EU-27, which are used in the production of final products that are exported from the EU to the US.
Finally, the Report examines the evolution of the Tax Administration’s Collection Gap, which decreased to 0.8% in 2024, the lowest level since 2000, reflecting the improvement in the tax collection capacity of the revenue mechanism. Concurrently, the total outstanding debt of citizens to the State stood at 106.3 billion euros, recording a 7% reduction on an annual basis. This decrease is associated with the continuous improvement in tax collection, particularly following the pandemic in 2020.
Overall, the GPC Report reflects the sustained growth momentum of the Greek economy despite international challenges. The rapid reduction of public debt, combined with attracting investments and enhancing competitiveness, remains a critical priority for the sustainable economic development of the country.
