Greece’s economy is projected to see faster growth in 2024 thanks to increased tourism, higher investment, and domestic demand. The government’s final budget for 2024 shows an expected economic output increase of 2.9%, up from the 2.4% expansion projected for this year. This growth is expected to be driven by European Union recovery funds, with Greece set to receive more than 55 billion euros from EU structural and recovery funds by 2027.
Investment is also projected to grow significantly in 2024, with a forecasted increase of about 15.1%. This represents a significant improvement compared with the current year and reflects Greece’s regaining of investment grade status for its debt. The economy is attracting investment due to its strengthening position, with plans for public asset sales and pay raises for civil servants and pensioners included in the budget.
Greece expects to achieve 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 anticipated to decrease to 152.3% of GDP in 2024 thanks to the influx of recovery funds and strong economic performance. The country also expects higher than expected tax revenues and projections for declining annual inflation rates and unemployment figures.
The government has prioritized economic growth by providing measures such as a reserve for natural disasters and raising funds through state asset sales. With the economy showing significant signs of recovery, Greece is optimistic about its financial outlook for 2024 and beyond, including its ability to continue attracting investment and achieving sustainable growth patterns.
In conclusion, the Greek economy is set to experience faster growth in the coming year due to increased tourism, higher investment, domestic demand and recovery funds from the European Union. This growth is expected to benefit not only Greece but also other countries within the Eurozone as it strengthens their economies as well.
However, despite this positive outlook, it’s important for Greece to continue implementing reforms that will make their economy more competitive globally while maintaining a balanced fiscal policy that will sustain long-term growth prospects