The growth and inflation forecasts for the Greek economy have forced the Bank of Greece to reverse its forecasts for the Greek economy, growth, and inflation. In its annual report presented yesterday by the Governor of the Bank of Greece, Yiannis Stournaras, an economy with “two faces” is revealed:

– On the one hand, an economy that for the fifth year in a row is growing much faster than the eurozone, with unemployment at a 16-year low and public debt in free fall.

– On the other hand, 2026 suddenly brings the economy face to face with a new energy shock – from the Middle East this time – that halts the deceleration of inflation, slows growth, and brings back the danger everyone thought they had left behind: stagflation.

Bank of Greece Governor Yiannis Stournaras spoke at the General Meeting of Shareholders in a tone that is hard to get used to from central bankers: both optimistic and cautionary. “The Greek economy is in a stronger position than in the past,” he said… And immediately afterwards, he announced a downward revision of the forecasts!

With the new data, the BoE is revising its growth rate for 2026 to 1.9%, from 2.1% last year. But the picture is worse for the eurozone as well: growth of 0.9% in 2026, down from 1.4% in 2025.