Greece’s central bank has revised downward its growth outlook for 2026,
Greece’s central bank has revised downward its growth outlook for 2026, citing escalating geopolitical tensions and the ongoing conflict in the Middle East as key factors weighing on economic momentum.
Speaking at a general shareholders’ meeting, the governor of the Bank of Greece said the country’s growth rate is expected to slow to 1.9% in 2026, compared with earlier projections of stronger expansion. The downgrade reflects weaker consumption growth and a negative contribution from the external sector.
Slower eurozone growth adds pressure
The revised outlook also aligns with a broader slowdown across the euro area. Growth in the eurozone is now projected to fall to 0.9% in 2026, down from 1.4% in 2025, as geopolitical uncertainty and energy market disruptions increase the risk of stagflation-like conditions.
Investment and consumption still support growth
Despite the weaker forecast, officials expect the Greek economy to continue outperforming the eurozone average.
Investment is projected to remain the main driver of growth, supported by European recovery funds, improved credit conditions, and foreign direct investment. Private consumption is also expected to continue rising, driven by higher employment, wage growth, and increasing disposable income, though at a slower pace than in previous years.
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