Greece will continue to outperform other member-states in the Eurozone over the next 2 years, as the country’s public debt will decrease Capital Economic projects in its revised outlook report for 2024.

The London-based research company estimates the common currency bloc will remain stagnant over the first 6-month term of 2024 due to the impact of high-interest rates on consumer spending and investment as well as tighter fiscal policies.

Household consumption seems poised to remain lackluster for some time, the firm forecasts. As it notes, the real incomes of households should increase in light of the recovery in wage growth and the decline in inflation. However, instead of spending their disposable incomes, households have increased their savings rates in recent months.

The Capital Economics report predicts the Eurozone’s GDP will contract in the 4th quarter of 2024 with the bloc’s economy gradually experiencing a slight recovery as interest rates fall and real incomes rise.

Greece is expected to maintain better performance compared to the broader Eurozone economy for the next two years, and public debt will decrease, while Spain is set to also stand out in the Eurozone after an initial economic slowdown in the coming quarters.