The International Monetary Fund (IMF) is forecasting growth of 1.8% for the Greek economy in both 2026 and 2027, according to its World Economic Outlook report released on Tuesday.
The forecast for 2026 is unchanged from the Fund’s previous report in April, while the projection for 2027 has been revised slightly upwards from 1.7%.
In both years, Greece’s GDP growth is expected to be significantly higher than that of the eurozone, where growth is projected at 1.2% and 1.1%, respectively.
Economic growth is expected to drive a further decline in unemployment, from 8.9% last year to 8% this year and 7.6% in 2027, bringing the rate closer to the eurozone average, where unemployment is forecast to remain stable at 6.3% in 2027.
Inflation, which is being driven by a greater-than-anticipated impact of the war in the Middle East on energy prices, is projected to rise to an annual average of 4.2% in 2026, up from 2.9% in 2025, before easing to 3.6% in 2027. In both years, inflation is expected to exceed the eurozone average, forecast at 3.1% and 2.8%, respectively.
Higher energy prices are expected to widen Greece’s current account deficit from 5.7% of GDP last year to 6.5% this year, before narrowing to 5.9% in 2027.
The eurozone’s current account surplus, which stood at 1.7% of GDP last year, is projected to fall to 1.2% in 2026 before edging up to 1.3% in 2027.
PS Greek Finance Minister and Eurozone chief, Kyriakos Pierrakakis, had recently claimed that growth for 2026 would be slightly over 2 percent.