Greece Forecasts Faster Economic Growth in 2026

Greece expects its economy to expand more quickly in 2026, according to the government’s draft budget submitted to parliament.

The country forecasts GDP growth of 2.4%, compared with 2.2% in 2025, supported by higher investment levels and household spending.

Funding from European Union recovery programs will continue to play a key role in sustaining growth.

Investment is projected to increase by 10.2% in 2026, reflecting renewed private and public sector activity.

Fiscal Outlook and Budget Priorities

The government projects a primary surplus of 2.8% of GDP for 2026, underpinned by stronger tax collection and lower unemployment.

The budget includes €1.7 billion in tax reductions aimed at easing the cost of living, supporting families with children, and funding pension increases. These measures will be financed through higher revenues and continued economic expansion.

Public debt, currently the highest in the euro area, is expected to decline from 145.3% of GDP in 2025 to 137.6% in 2026.

If this happens, Greece will no longer be the most indebted country in the European Union.

Economic Outlook and Debt Stability

Since exiting its bailout programs in 2018, Greece has restored investment-grade credit ratings, stabilized its financial system, and relied on market borrowing to meet its financing needs.

The government plans to maintain a primary surplus of around 2% each year, ensuring the sustainability of its public debt and continued access to capital markets.