Greece is on a better developmental trajectory compared to other European countries, according to a note from Piraeus Bank.

The analysis, drawn from the European Commission’s “Winter 2024 Economic Forecast” report released in mid-February, suggests that Greece will maintain a steady growth trajectory throughout 2024-2025, with a projected growth rate of 2.3%.

Notably, consumption is anticipated to continue its upward trend, albeit moderately, mirroring the patterns observed in 2023 and serving as a pivotal driver of economic expansion. However, its contribution to the overall increase in real GDP is expected to be somewhat restrained.

Furthermore, the outlook for increased investment appears optimistic, buoyed by both the recovery plan and favorable financing conditions. Focus is anticipated to shift towards investments in machinery and equipment. Nonetheless, this surge in investment might translate into higher import volumes, thereby reducing the favorable impact of external trade on growth.

Projections indicate a decline in harmonized inflation to 2.7% in 2024, followed by a further decrease to 2% in 2025, suggesting a semblance of stability in the inflationary landscape.

In contrast, the Eurozone faces persistent challenges as evidenced by stagnant growth in the fourth quarter of 2023, registering a mere 0.1% annual increase. Expectations for improvement in the first quarter of 2024 remain subdued, with inflation showing signs of slowing down. However, it’s worth noting that unemployment across the Eurozone remains historically low despite these economic headwinds.