Greece faces economic convergence challenges in Southern Europe

An analysis by Morningstar DBRS highlights the varying speeds of economic convergence across Europe. Greece, grouped with Cyprus, Spain, and Portugal in the Southern Europe category, faces challenges in closing the income gap with the rest of the European Union. While Southern Europe remains on a path of growth, its per capita growth is projected to slow from approximately 1.6% to 1.2% during the 2030–2040 period.

In contrast, Central and Eastern European economies have shown significant progress, with their per capita income relative to the EU average rising from 29% in 2000 to a projected 61% by 2026. The report suggests that productivity, demographics, and investment quality will be decisive factors in whether Greece can accelerate its economic trajectory after 2030.

Separately, discussions regarding Greece's fiscal policy continue as the government prepares for upcoming economic forums. The administration has emphasized the importance of maintaining fiscal stability and budget surpluses to ensure sustainable growth, despite political pressures regarding public spending.