According to the draft budget submitted to Parliament yesterday, the government forecasts 2.3% growth in 2025, driven by tourism and investment.
This is a revision from the earlier projection of 2.6% growth made in April. It reflects the stagnation in the European economy, a key source of investment and tourism, along with high inflation.
The plan includes increases in pensions, the minimum wage, and public sector salaries, along with reductions in social security contributions and a boost in investments.
A country’s budget outlines its financial goals and activities for the upcoming year.
A reduction in debt to 149.1% of GDP is expected, though it remains the highest in Europe and among the highest globally. State revenues from taxes are projected to rise by 5.2% compared to last year.
There are also concerns about economic risks due to the conflicts in the Middle East and Ukraine.
Since exiting the bailout program in 2018, Greece regained its investment-grade credit rating last year, revived its banking system, and has relied solely on debt markets for its borrowing needs, according to Reuters. However, unemployment remains at 10%, and the average monthly wage is still 20% lower than 15 years ago.
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