Greek economy moves beyond debt reduction to productivity challenge

Greece’s public‑debt ratio has begun to shrink faster than any other euro‑zone country, and the International Monetary Fund projects that it will fall below Italy’s by the end of 2026. This fiscal improvement has already helped the country regain an investment‑grade rating and keep borrowing costs at competitive levels.

Analysts warn that the next "battle" will centre on structural strengths. Persistent current‑account deficits, labour‑productivity that lags the EU average, and heavy reliance on tourism and private consumption expose the economy to external shocks. Rating agencies now assess productivity, competitiveness, the quality of investments, institutional resilience and the ability to sustain high growth amid geopolitical instability in the Middle East, energy‑market uncertainty and broader European slowdown. The Greek government plans to channel Recovery‑Fund money, maintain fiscal discipline and push reforms to boost high‑value investment and long‑term resilience.