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Strong investment expected to drive 2.9% growth in Greek economy next year


Nov 21, 2023

In Athens, Greece, tourists are frequently drawn to the ancient temple of the Parthenon, located atop the Acropolis. The government’s 2024 final budget, announced on Tuesday, has revealed its expectations for a stronger economic growth in the coming years, largely attributed to increased tourism, higher investment, and domestic demand.

The Greek government anticipates that the economy will expand by 2.9% in 2024, following a 2.4% expansion in the current year. It is forecasted that Greece will receive over 55 billion euros from EU structural and recovery funds by 2027, which is expected to contribute to an annual growth of 1 percentage point.

Furthermore, investments are projected to increase by approximately 15.1% in 2024, more than double compared to the current year. This surge in investments is a result of Greece regaining investment grade status for its debt and selling significant stakes in two of its major banks last week. These elements have attracted new investment as the Greek economy continues to strengthen post a decade-long economic crisis.

The Greek government’s budget also outlines a primary budget surplus target of 2.1% of gross domestic product in 2024, excluding debt-servicing costs, which is crucial for debt sustainability. It includes pay raises for civil servants and pensioners, as well as a 600 million euro reserve for natural disasters, partly funded by a special hotel levy.

According to the budget submitted to parliament, public debt in Greece is expected to decrease from 160.3% of GDP in 2022 to 152.3% of GDP in 2024. The government also forecasts a decrease in the annual inflation rate from 4.1% in 2023 to 2.6% by the end of 2024 and a decline in unemployment from 11.2% to 10.6% within the same timeframe.

The Greek government’s proposed budget also includes a plan to raise 5.77 billion euros from state asset sales in 2024. These initiatives outline their optimism and the measures taken to propel the country’s economy forward.

By Editor

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