Greek economy faces dual pressure from energy costs and ECB rate hikes

The Greek economy is facing a dual challenge as rising energy costs and increasing interest rates threaten economic growth. On September 10, 2026, the European Central Bank (ECB) raised deposit rates by 25 basis points to 2.50%, marking the second rate hike of the year following a similar move in June.

This monetary tightening occurs alongside a surge in energy prices. Brent crude oil has surpassed $100 per barrel, and European natural gas prices are approaching three-year highs. Escalating tensions in the Middle East have raised concerns regarding energy supply stability, challenging previous assumptions that the energy shock would be temporary.

While the ECB aims to prevent energy costs from becoming embedded in the prices of goods and services, higher interest rates increase the cost of borrowing, which may limit consumption and investment. Eurozone inflation accelerated to 3.3% in August, up from 2.9% in July, driven largely by a 14.3% annual increase in energy prices. The ECB has projected Eurozone growth at 0.9% for 2026, 1.4% for 2027, and 1.5% for 2028.