Tourists wait to view Santorini’s famed sunset, on Santorini, Greece, July 25, 2024. [Reuters/Alkis Konstantinidis/File photo.]
The Greek government predicts a 2.3% economic growth in 2025, surpassing major European economies, supported by strong tourism revenues and consumer spending. Despite a debt crisis in 2015, Greece expects a 2.2% rise in economic output this year.
The revised forecast accounts for stagnant European economy and high inflation impacting investments and tourism. The budget aligns with the fiscal plan submitted to the EU, citing risks from geopolitical tensions.
To fund pension hikes and support vulnerable households, the budget anticipates higher spending and tax breaks. Greece aims to increase the primary budget surplus to 2.5% of GDP in 2025, to ensure debt sustainability.
While Greece has made progress since exiting the bailout in 2018, challenges like high unemployment persist. Public debt is projected to decrease to 149.1% of GDP in 2025 from 153.7% this year. [Reuters]