Finance
Greece's economy projected to grow 2.1% in 2025, IMF says
Published by Global Banking and Finance Review
Posted on January 30, 2025
2 min readLast updated: January 26, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 30, 2025
2 min readLast updated: January 26, 2026
Greece's economy is projected to grow by 2.1% in 2025, driven by investment, according to the IMF. However, potential euro area crises could impact this growth.
ATHENS (Reuters) - Greece's economy is projected to grow 2.1% in 2025, mainly driven by investment, the International Monetary Fund mission said on Thursday, adding that any crisis in major euro area countries as well as global uncertainties could hamper growth.
This compares with a Greek government forecast of 2.3% for this year
In the medium term, growth is forecast to slow to around 1.25% against a backdrop of demographic "headwinds and sluggish" productivity growth, the Fund said in a statement.
The current account deficit is expected to narrow gradually below 4% of gross domestic product over the medium term, the IMF said, with imports set to slow along with the winding down of post-COVID recovery funds from the European Union.
"The primary surplus is expected to remain high at around 2-1/2% of GDP in 2025 as reduced revenue from an additional cut in social security contributions is expected to be broadly offset by revenue gains from reforms aimed at reducing tax evasion and increasing tax compliance," it said.
The IMF, one of Greece's official lenders during its debt crisis which erupted in late 2009, urged the country to accelerate structural reforms to help bolster public investment.
"It is essential to protect non-pension social spending, such as healthcare and education, to promote inclusive growth, while enhancing efficiency," it said.
(Reporting by Ivana Sekularac; Editing by Gareth Jones)
Greece's economy is projected to grow by 2.1% in 2025, primarily driven by investment.
The IMF's forecast of 2.1% growth for 2025 is slightly lower than the Greek government's forecast of 2.3% for the same year.
In the medium term, growth is expected to slow to around 1.25% due to demographic challenges and sluggish productivity growth.
The current account deficit is expected to gradually narrow below 4% of GDP over the medium term, with imports slowing down.
The IMF urged Greece to protect non-pension social spending, such as healthcare and education, to promote inclusive growth while enhancing efficiency.
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