Greece has trimmed its forecast for 2024 economic growth to 2.5% from 2.9% previously, as stagnation in big euro zone countries affects investment and exports, the country’s stability programme report showed on Tuesday.
Under its 2024-2025 fiscal plan submitted to the European Commission and released by its finance ministry, Greece sees weaker investments, exports and public consumption than initially estimated.
More than half of foreign direct investment into Greece comes from northern European countries, while two thirds of the country’s exports, such as agricultural goods, fuel and pharmaceutical products, head to the European Union.
Despite the downward revision Greek growth is expected to outperform the euro zone average of 0.8%, supported by strong tourism and EU funding.
“This growth trajectory reflects a steady contribution of private consumption, supported by robust real disposable income growth, wage increases and further labour market gains,” the Greek finance ministry said in a statement.
It expects growth of 2.6% for next year.
The government expects its primary budget surplus – which excludes debt servicing – to reach 2.1% of its gross domestic product (GDP) this year, unchanged from the forecast in its 2024 budget in December.
Source: Reuters (Reporting by Lefteris Papadimas; Editing by Ros Russell)
