Greece enters 2026 on a wave of resilience, sustained by strong domestic demand and the strategic execution of Next Generation EU reforms. Real GDP grew by 2.1 percent in 2025, buoyed by a record-breaking tourism season and a steady decline in unemployment to 8.3 percent. This economic momentum, coupled with aggressive efforts to combat tax evasion, has allowed the government to maintain a high primary surplus while rapidly reducing the public debt-to-GDP ratio to approximately 145 percent. Although growth is projected to moderate to 1.8 percent this year due to high energy prices and Middle East instability, the country’s strengthened balance sheets provide a vital buffer against these external shocks.The current policy mix focuses on a transition from crisis management to sustainable support. Recent personal income tax cuts are designed to bolster household purchasing power and encourage labor participation among youth and women, while the banking sector remains sound with record-low non-performing loan ratios. However, persistent challenges remain in the form of a widening investment gap and a housing market where prices rose nearly 8 percent in 2025. Addressing these requires a shift toward mobilizing underutilized housing stock and ensuring that fiscal support for energy costs remains temporary and strictly targeted.To secure long-term prosperity, Greece must now tackle structural hurdles including sluggish productivity and adverse demographic trends. While the digital transformation and judicial reforms are moving in the right direction, accelerating investment in innovation and further reducing administrative burdens are essential. By fully utilizing available EU funds and refining financial safeguards, Greece can navigate the current global volatility and foster a more inclusive, high-growth economy that thrives within the integrated European market. (ICE ATENE)

Fonte notizia: imf.org