Greece

Greece's near-term economic outlook remains favorable, establishing a solid foundation to address remaining crisis legacies and structural imbalances necessary for achieving sustainable growth in the medium to long term. Real GDP has continued its robust expansion, driven by public investment and structural reforms in the context of the Next Generation EU (NGEU), alongside steady growth of private consumption. The public debt-to-GDP ratio, while still high, is on a firm downward trajectory. However, remaining crisis legacies and structural challenges arising from the still low level of overall investment, an unfavorable demographic outlook, sluggish productivity growth, and increasing climate risks are weighing on medium-term growth prospects.