Greece's GDP grows 2% in Q1 2026 amid mixed investment trends

Greek gross domestic product (GDP) expanded by 2.0% year‑on‑year in the first quarter of 2026, meeting the government’s 2026 target. The increase was driven largely by domestic demand, with total consumer spending up 1% YoY. Investment in fixed capital rose sharply by 12.1% YoY, reflecting the continued use of Recovery and Resilience Fund resources for infrastructure, energy and real‑estate projects, although quarterly investment fell 2.5%. Exports of goods and services grew 2.4% YoY, helped by a 3.1% rise in service exports, while imports edged up 0.5% YoY, with goods imports slipping 0.6%, supporting a modest improvement in the trade balance.

Analysts note that the external environment remains fragile, citing the ongoing conflict in the Middle East and rising energy costs as sources of uncertainty. On 30 April, the Ministry of Finance lowered its growth forecast for 2026 from 2.4% to 2.0%, and the Bank of Greece projects 1.9% growth, reflecting these risks. The United Nations has also questioned the adequacy of GDP as a welfare indicator, illustrating that activities such as forest‑fire reconstruction can inflate GDP without improving living standards.

Overall, the data show that while Greece’s economy is still expanding, the pace has slowed and future performance will depend on external geopolitical and energy developments.