On Monday, the Ministry of Finance announced that the government has reduced its forecast for economic growth in Greece for 2024 to 2.2% for the second time this year, as stagnation in Eurozone countries affects investments and exports.
This impacts Greece because more than half of its foreign direct investment comes from Northern European countries. At the same time, two-thirds of its exports, including agricultural products, fuels, and pharmaceuticals, go to European Union countries.
This marks the second reduction in the Greek government’s growth rate, with the initial forecast of 2.9% revised down to 2.5% in April and now to 2.2%.
The growth rate is the percentage increase or decrease in a country’s Gross Domestic Product (GDP) compared to the previous year.
The Ministry of Finance has revised its growth estimate for 2025 to 2.3% from the previous 2.5%, which remains above the Eurozone average.
Greece expects its primary budget surplus to reach 2.4% of Gross Domestic Product (GDP) this year, revised upward from the last forecast of 2.1% in April, and to remain at 2.4% in 2025.
However, potential natural disasters in the country, which often lead to emergency expenditures, could jeopardize the growth of the Greek economy in the coming years.
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