The IMF says Europe’s recovery is fragile and warns that rising spending, weak productivity, and aging populations could push debt to dangerous levels. Greece, despite strong growth, remains burdened by high debt and dependence on EU funds.

The Washington D.C.-based Fund's Fiscal Monitory report said Greece's debt is forecast to decrease by 16.5 percentage points over the next five years, despite lower primary budget surpluses

Additionally, the IMF forecasts that inflation in the east Mediterranean country will increase marginally, to 3.1% this year, before easing to 2.5% in 2026

Greece’s Finance Minister, Kyriakos Pierrakakis, held a high-level meeting on Friday, April 25, with Treasury Secretary Scott Bessent and Deputy U.S. Treasury Secretary Michael Faulkender.

"What we see in Greece is what we want to see everywhere," says IMF Managing Director Kristalina Georgieva.

IMF slashes global growth forecast to 2.8% as U.S. tariffs create uncertainty and ‘negative supply shock’.

The report suggests Greece’s economic expansion will be fueled primarily by investments, supported by projects financed through the EU Recovery Fund.

The forecast was included in the D.C.-based Fund’s Fiscal Monitor report on global fiscal developments

The corresponding forecasts by the Greek government are 2.2% for 2024 and 2.3% for 2025

An IMF report cites a 30-percentage-point decrease in the GDP-to-debt ratio due to continued economic growth, inflation and a 2018 debt relief agreement

Projected consumer prices are forecast to rise by 2.7%

The country's efforts at digitalization and in combatting tax evasion seem to be bearing fruit

Special analysis for 2022-23 cites the consequences of price appreciation in housing, energy and food

The ongoing protests by farmers in France and Germany have prompted responses from President Emmanuel Macron and Chancellor Olaf Scholz, leading to a series of announcements

Their attacks have prompted major shipping companies to instruct their vessels to avoid the maritime route through the Suez Canal, opting instead to circumnavigate Africa which has resulted in significantly more time-consuming and costly maritime transportation

In the report, the IMF is also raising some concerns about the Greek banking system, urging Greek authorities to take measures

The IMF predicts a real GDP growth of 2.3% in 2023 (revised from the previous 2.5%) and 2.1% in 2024 (revised from 2%). Regarding inflation, the estimate suggests a decrease from 4.2% in 2023 to 2.8% in the current year

IMF Projects Global Inflation to Stand at 6.9 Percent in 2023