The Economist has released its annual ranking of economic performance for 36 mostly advanced economies, assessing five key indicators: inflation, “inflation breadth,” GDP growth, employment, and stock-market returns. Greece once again stands out for its strong performance in the year now drawing to a close.
Southern Europe Takes the Lead
This year’s list highlights the strength of Southern European economies—Greece among them. After Spain topped the ranking last year, Portugal claims first place for 2025, combining robust GDP growth, low inflation, and a buoyant stock market.
Other eurozone countries that struggled during the 2010s, including Greece—ranked first by The Economist in both 2022 and 2023—and Spain, also appear near the top. Greece shares sixth place with the Czech Republic, each recording a 1.7% score.
Israel continued its sharp recovery from the turmoil of 2023, while Ireland narrowly missed securing the top spot.
Northern Europe Falls Behind
A decade ago, few would have imagined northern Europe slipping to the bottom of the rankings, yet in 2025 Estonia, Finland and Slovakia are among the weakest performers. Germany has inched forward but still scores poorly, much like Britain. France, despite political turmoil, lands a respectable 11th place. The United States sits mid-table, ranking below Italy, with elevated inflation weighing heavily on its score.
Turkey remains the outlier with by far the highest inflation, followed by Estonia. At the opposite end, countries like Sweden, Finland and Switzerland face unusually weak price growth, with Sweden’s core inflation almost nonexistent. Japan’s inflation has risen compared with the 2010s, but still falls well short of the overheating seen elsewhere.
Employment and Output
Portugal stands out again thanks to a booming tourism sector and an influx of wealthy foreign residents benefiting from favorable tax rates. Its GDP growth far exceeds the European average.
The Czech Republic and Colombia record notable gains in both output and employment, while South Korea saw job losses. Norway, heavily reliant on raw materials and shipping, has been hurt by the slowdown in global trade.
Stock-Market Performance
U.S. stocks have risen, but largely on momentum from previous years, while France’s market has also been muted, with LVMH shares flat. Denmark performs worst, as Novo Nordisk plunges 60% after losing its lead in weight-loss drugs.
By contrast, Israel posts standout gains: Bank Leumi shares are up about 70%, and the main index has climbed 53.3%.
Among the 10 fastest-growing economies, Greece ranks fourth in general index growth, posting a 44% increase. Slovenia (52.8%) and the Czech Republic (46.2%) lead the group.
Portuguese investors also enjoyed a strong year, with the local stock market rising 20.9% in 2025.
