Greece forecasts economy to grow at faster pace in 2026

Greece's fiscal council anticipates 2.4% economic growth for 2026, driven by higher investment and robust consumer spending, alongside a 2.8% primary surplus from increased tax revenues and lower unemployment, positioning the nation to outperform major European economies. However, the government revised its 2025 growth estimate slightly downward from 2.3% to 2.2%, citing a stagnating European economy and the impact of new U.S. tariff policies.

Analysis

Futures rise amid ongoing U.S. federal shutdown - what’s moving markets ATHENS (Reuters) -The Greek government expects economic growth of 2.4% next year, outperforming Europe’s major economies, thanks to higher investment and robust consumer spending, according to the country’s 2026 draft budget cited by the fiscal council on Monday. Greece’s fiscal council is an independent body that evaluates the country’s macroeconomic and budgetary forecasts. The government is expected to submit its 2026 draft budget to the parliament later on Monday. Greece, which has been recovering from a debt crisis that nearly saw the country drop out of the euro zone in 2015, projects a primary surplus of 2.8% due to higher tax revenues and lower unemployment, the fiscal council said. The government trimmed its previous estimate for 2025 growth of 2.3% to 2.2% due to a stagnating European economy, a key source of investment and tourism for Greece, and the effects of the Trump administration’s new tariff policy in the United States. Which stocks should you consider in your very next trade? The best opportunities often hide in plain sight—buried among thousands of stocks you'd never have time to research individually. That's why smart investors use our Stock Screener with 50+ predefined screens and 160+ customizable filters to surface hidden gems instantly. For example, the Piotroski's Picks method averages 23% annual returns by focusing on financial strength, and you can get it as a standalone screen. Momentum Masters catches stocks gaining serious traction, while Blue-Chip Bargains finds undervalued giants. With screens for dividends, growth, value, and more, you'll discover opportunities others miss. Our current favorite screen is Under $10/share, which is great for discovering stocks trading under $10 with recent price momentum showing some very impressive returns! Greece's fiscal council projects the nation's economy will grow by 2.4% in 2026, a rate expected to outperform major European economies. This optimistic forecast is predicated on an increase in investment and sustained robust consumer spending. The draft budget also anticipates a primary surplus of 2.8%, driven by higher tax revenues and a decline in unemployment, signaling continued fiscal consolidation following its 2015 debt crisis. However, this positive long-term outlook is tempered by near-term headwinds. The government has trimmed its 2025 growth forecast from 2.3% to 2.2%, citing external pressures including a stagnating European economy—a key source of investment and tourism for Greece—and the economic effects of new tariff policies from the United States. This juxtaposition highlights a resilient domestic outlook facing significant external risks.

Key Decisions for Investors

• Investors could view the projected 2.4% growth and 2.8% primary surplus for 2026 as a constructive signal for Greek sovereign debt and equities with high domestic economic exposure.
• It is critical to monitor macroeconomic indicators from the broader Eurozone and developments in U.S. trade policy, as these were explicitly cited as key risks that prompted a downward revision to the 2025 growth forecast.
• The thesis for outperformance hinges on higher investment and consumer spending, so investors should track Greek retail sales, consumer confidence, and foreign direct investment data for confirmation of these underlying trends.