Greece Economy Forecast to Outpace Eurozone Growth Despite Inflation
Bank of Greece releases new analysis projecting 2% GDP growth in 2026, while warning that rising energy and service costs threaten household purchasing power.
- Greek GDP is projected to grow by 2% in 2026, outpacing the eurozone average.
- Inflation rose to 5.1% in September driven by energy and service sector pressures.
- Unemployment fell to 7.4% in August alongside steady investment growth.
Understanding official economic projections and inflation rates helps investors and residents evaluate market conditions and living costs in Greece.
Greece's economy is expected to grow faster than the eurozone average through 2028, supported by private consumption, investment, and exports, according to a Bank of Greece analysis. Gross domestic product is projected to expand by 2% in 2026, 1.9% in 2027, and 2% in 2028, following a 1.9% year-on-year growth rate in the second quarter of 2026. Investment increased by 6.1% in the second quarter, with the revised investment-to-GDP ratio for 2025 standing at 18%. Furthermore, the unemployment rate declined to 7.4% in August. However, inflation has emerged as a primary economic risk. The Harmonised Index of Consumer Prices rose to 5.1% in September from 3.7% in August, driven by sharp increases in energy costs and persistent price pressures in services. Eurosystem forecasts place Greek inflation at 3.5% for 2026 before easing to 2.7% in 2027 and 2.2% in 2028, provided international energy prices moderate.
Yavanet will keep updating from official sources.
