The greek shadow economy, valued at over €40 billion -about 18% of its GDP- remains entrenched as cash continues to dominate daily transactions, fueling undeclared income and tax evasion despite efforts to curb it

With €2.5 billion in wage hikes, bonuses, and tax cuts, Greece is loosening its purse strings to ease household strain — cautiously, and amid widespread discontent with government performance

The study, entitled 'The Café Economy: Structural Τransformation in Greece in the Wake of Austerity and “Reforms', opined that bailout-mandated reforms did not change the country's production model

As visitor numbers soar and infrastructure strains, the Bank of Greece warns that the country’s islands must shift from growth to sustainability — with €35 billion in new investments to keep paradise afloat

Finance Minister Kyriakos Pierrakakis said the government will distribute €2.5 billion over the next eight months through raises, rent rebates, and tax cuts, promising “tangible results” for Greek households after years of financial strain

Greece’s debt ratio is expected to fall steadily, from 143.4% of GDP this year to 135.9% in 2026 and 129.4% in 2027.

Established in 2020 and running through 2026, the initiative includes the (RRF), with a total envelope of up to €725 billion — roughly 4% of the European Union’s GDP

Greece’s draft 2026 budget banks on doubling investments to drive growth, but EU funding deadlines, a cooling property market, and stubborn inflation pose serious risks

“Greece is ready to support diplomatic efforts for peace and the establishment of a new, sustainable governance framework in Gaza,” Mitsotakis said

Despite strong macroeconomic figures, Greek households are under mounting pressure, cutting back on essentials and showing greater insecurity and caution compared to last year

The Center of Planning and Economic Research revised, slightly downwards, it previous forecast of 2.2%

Greek economy: Record tourist arrivals and strong budget surpluses hide slow growth, widening inequality, and a political landscape stuck in neutral

Overall, the trade balance deficit narrowed, as the reduction in imports exceeded that of exports in absolute terms.

DBRS chose not to upgrade Greece’s credit rating, with analysts widely anticipating Moody’s will also hold off on any change.

The fiscal performance of the Greek economy is attributed to higher tax revenues and the contribution from the Attiki Odos motorway deal.

Preliminary data from the Hellenic Statistical Authority shows Greece’s GDP grew just 1.7% year-on-year in second quarter (Q2) 2025, signaling a slowdown ahead of forecasts for the Thessaloniki International Fair

Deutsche Bank said it believes the sharp decline in inflation from the 2022–2023 highs has largely run its course.

The bank forecasts a 2.2% expansion of the Greek economy in 2025, slightly down from 2.3% in 2024, before slowing to 1.8% in 2026.

Bank of Greece data confirm that visitors spent significantly more regardless of the modest rise in arrivals. Germans, French, Italians, and Americans, in particular, boosted spending per trip, helping widen the surplus.

A key point in the Prime Minister’s message was the expansion of the digital work card, now covering nearly two million employees, including those in tourism and hospitality.