Europa Posted on 2025-11-22 10:59:00

Greece forecasts 2.4% economic growth/ Budget includes 1.7 billion euros in fiscal benefits for families, pensions

From Kristi Ceta

Greece forecasts 2.4% economic growth/ Budget includes 1.7 billion euros in

Greece expects its economy to grow faster in 2026 and public debt to decrease by almost 8 percentage points, thanks to higher investment and strong domestic consumption.

According to the government's final budget plan, economic output will expand by 2.4% next year, outpacing major European economies, after growing by 2.2% this year, partly with the help of European Union recovery funds.

Greece forecasts a primary surplus, which excludes debt service costs, of 2.8% of Gross Domestic Product next year, thanks to higher tax revenues and lower unemployment.

The country's public debt, the highest in the euro area, is expected to fall by 7.7 percentage points to 138.2% of GDP in 2026, from 145.9% this year, and to fall below 120% in 2029.

The new budget includes fiscal benefits of around 1.7 billion euros to support families with children and to finance pension increases, financed from the primary surplus.

Greece needs to achieve a primary surplus of around 2% per year, compared to 3.7% in 2025, to cover interest payments and keep debt sustainable.

 

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