Greece’s economy is projected to grow faster than the eurozone average until 2028, despite facing challenges such as rising inflation and high energy costs, according to a report by the Bank of Greece. The forecast suggests that Greece’s gross domestic product (GDP) will increase by 2% in 2026, 1.9% in 2027, and 2% in 2028, maintaining a stronger growth outlook compared to the broader eurozone.
In the second quarter of 2026, Greece’s economic expansion reached 1.9% year-on-year, outpacing the eurozone’s growth rate of 1.2%. The main drivers of this growth include household consumption, investment, and exports. Detailed data for the quarter revealed a 1.7% rise in private consumption, a 6.1% increase in investment, and a 2.2% growth in exports of goods and services compared to the same period the previous year.
However, the report notes that imports grew at a faster pace than exports, which has limited the positive impact of international trade on Greece’s overall economic growth. This has highlighted the importance of bolstering domestic production and expanding the country’s export capacity to sustain economic momentum.
Inflation remains a significant concern, particularly in the energy and services sectors, as it could pressure household purchasing power and potentially impact the economic outlook in the coming years. Addressing these inflationary pressures will be crucial for maintaining the current growth trajectory.
The Bank of Greece’s projections suggest that, although there are formidable challenges, the Greek economy has the potential to continue outperforming its eurozone counterparts by focusing on strengthening domestic demand and increasing export capabilities.