FinMin: Greek economy on track for continued growth
A combination of pro-growth policies and social support measures will ensure the country’s continued fiscal stability and growth, Economy and Finance Minister Kostis Hatzidakis said on Monday.
Despite global challenges, “the Greek economy remains on a growth trajectory and will continue to outperform the euro zone average,” he told Parliament’s Committee on Economic Affairs during a discussion on the 2025 State Budget.
The budget reflects the continuing decline in unemployment, which Hatzidakis claimed has seen “a significant decrease over the past five years,” and outlines a “continued rapid reduction in public debt.”
The minister noted that the projected revenue increase will be a result of economic growth rather than higher taxes, as well as an indication of the government’s efforts to raise wages and crack down on tax evasion.
Compared to the 2024 budget forecasts, net revenues are expected to rise by 2.4 billion euros and expenditures by 1.6 billion euros. A total deficit of 1% of GDP is projected for this year, slightly better than the 1.1% forecast in the introductory report of the 2024 budget.
According to the 2025 budget forecast, Greece is also expected to achieve a primary surplus of 5.967 billion euros, or 2.5% of GDP, which represents an increase of 2.1%.
Greece’s production model “is gradually changing,” he said, “as the composition of GDP shifts in favor of investments and exports, with a stronger industrial presence.”
The minister also presented data on key economic indicators that support his claims from the European statistical agency Eurostat and the Organization for Economic Cooperation and Development (OECD) to refute criticism from the opposition.
Based on the figures he presented to the committee, Greece was the champion in cumulative investment growth across the EU and achieved the largest drop in unemployment rate by approximately 7 percentage points, in the bloc for the 2019-2023 period.
During his speech, the minister also announced the expansion of the abolition of the fee for practicing a profession to all non-salaried professions. The change will apply to income earned in 2024 and that will be declared in the 2025 tax returns. The abolition of the professional fee (“telos epitidevmatos”) will also include professionals working with a so-called “freelance contract” who until now paid a fee of 400 or 500 euros.
Addressing food inflation, the minister acknowledged the strain it is putting on households but said that a “de-escalation is expected,” based on available data. The consumer price index is projected 2.7% in 2024 and is expected to further decline to 2.1% in 2025, according to the 2025 Budget.
