IMF: Greece’s Economic Outlook Remains Strong, Growth Continues

Greece’s near-term economic outlook remains favorable, with real GDP sustaining strong growth, according to Joong Shik Kang, head of the IMF Mission for Greece. Speaking at a press conference on Thursday, he highlighted continued fiscal consolidation and a firm decline in the public debt-to-GDP ratio, driven by reduced tax evasion and economic reforms, CE Report quotes Athens-Macedonian

The Greek economy expanded by 2.3% year-on-year in the first three quarters of 2024, supported by strong domestic demand, EU-funded investments, and rising real incomes. Unemployment fell to 9.5%, its lowest level since 2009, though labor shortages persist in sectors like construction and tourism.

Disinflation is progressing gradually, with headline and core inflation at 2.9% and 3.4%, respectively, by the end of 2024. Credit growth has accelerated, and real estate prices continue to rise. However, high domestic import demand has widened the current account deficit to an estimated 6.9% of GDP.

The IMF stressed the need for ongoing reforms to address structural challenges, boost productivity, and ensure long-term financial stability.