Greece Projects 2.4% Economic Growth and Debt Reduction in 2026 Budget

Greece's 2026 draft budget projects an economic growth rate of 2.4%, outpacing major European economies through strong investment, tourism, and domestic demand. Investment growth is expected to surge to 10.2% in 2026, supported by both private momentum and an expanded public investment program, contributing to closing the output gap. The government forecasts a primary budget surplus of 2.8% and a significant reduction in the public debt-to-GDP ratio to 137.6%, down from 145.4% in 2025, marking a milestone toward financial independence. Unemployment is expected to fall to historic lows around 8.6%, while inflation is projected to ease to approximately 2.2%. Despite downside risks from global economic uncertainties and geopolitical tensions, Greece aims to maintain fiscal discipline and attract further foreign investment, strengthening its recovery and stability within the eurozone. These projections highlight Greece's transition from crisis-era austerity to a more balanced and sustainable economic growth trajectory.