Greece‘s economy continues on a steady trajectory of strong growth, according to Morgan Stanley‘s Annual Economic Outlook for the remainder of 2025 analysis. The forecasts show the country’s gross domestic product (GDP) will grow 2.2% in 2025, a slightly lower performance than in 2024, while a slowdown to 1.8% is expected for 2026.

The main driver of this growth is investment, boosted by the ongoing implementation of the Recovery Fund and the increasing inflow of foreign direct investment. In contrast, private consumption is expected to slow, while net exports are expected to make a negative contribution to growth over the 2025-2026 period.

Meanwhile, the labour market is showing positive signs, with unemployment falling to 9% in March 2025, the lowest level since 2009. Continued economic growth is expected to lead to a further reduction in unemployment, reducing inactivity in the labour market and increasing employment.

As for inflation, the overall trend is downward, with a forecast of 2.1% in 2025, down from 2.7% in 2024. However, the same is not true for all sectors, rent prices are rising strongly, at an annual rate of 10.5%, much higher than the eurozone average (2.9%).