Greece’s economy will grow by 2.1% this year and 2.2% in 2026, influential think tank IOBE said in a report on Wednesday, lowering its previous projections and citing a global trade war and geopolitical tensions.
Greece is recovering from a 2009-2018 debt crisis that shrank its output by a quarter and squeezed household income amid belt-tightening required for international bailouts.
But it is now outperforming euro zone peers on the back of rising foreign investment and tourism revenues.
IOBE had forecast growth of 2.2% this year and 2.4% in 2026 in its previous quarterly report in July.
However, it said on Wednesday that external factors, including the possible escalation of a U.S.-China trade war, growing geopolitical tensions, and political and social turmoil in core euro zone countries, could increase inflationary pressure, hurting domestic consumption and exports.
Source: Reuters
