The International Monetary Fund (IMF) forecasts slower growth for Greece in 2026, with GDP expected to rise by 1.8%  and 1.7% in 2027, down from 2.1% last year, amid the ongoing global uncertainty driven largely by the conflicts in the Middle East.

Inflation in Greece is forecast to increase to 3.5% this year, up from 2.9%, before slightly easing to 2.7% in 2027. In the eurozone, inflation is expected to rise to 2.6% and then decline to 2.2%.

Despite these pressures, Greece’s unemployment rate is expected to continue to fall, from 8.9% in 2025 to 7.4% in 2026 and 7.1% in 2027. However, the country’s current account deficit is forecast to widen to 6.4% of GDP in 2026 before again narrowing.

The IMF’s baseline scenario assumes the Middle East conflict will ease within weeks, allowing energy markets to stabilize, though energy prices are still expected to rise sharply.

In a separate development, Reuters on Tuesday quotes what it describes as two Greek officials citing plans to revise the 2026 growth forecast down to around 2% (from 2.4%), due to higher inflation driven by increased energy costs linked to the Mideast war.