Greece's GDP set to grow 1.9% in 2026 amid rising employment

The OECD updated its outlook for Greece, projecting real GDP growth of 1.9% in 2026 and 2.0% in 2027, slower than earlier estimates but still robust. Inflation is expected to peak at 4.2% in 2026 before falling to 2.6% the following year. The report highlights fiscal surpluses in 2026‑27, continued investment support from EU recovery funds, and a rebound in tourism demand. Energy‑price shocks from the Middle‑East and wider geopolitical tensions remain key risks.

A separate ICAP CRIF study shows Greek employment improving markedly in 2025, with the employment rate reaching about 92% of the labour force and average annual employment rising 1.5% over 2024. Unemployment fell while private consumption grew 2%, driven by higher wages and increased participation of women. The findings underscore the labour market’s contribution to the overall economic momentum and reinforce expectations of continued modest growth into 2026.