The Athens-based Foundation for Economic & Industrial Research (IOBE) issued a revised, downward forecast for Greek economic growth in 2024, lowering the figure to 2.1% of GDP from a previous 2.4%.

At the same time, IOBE raised the forecast for annual inflation this year, citing a figure of 3% compared to 2.8%.  Additionally, IOBE also lowered its forecast for investment in the country in 2024, saying it will reach 7.8% of GDP, compared to a previous projection of 10.8%.

Unemployment is forecast to continue dropping, albeit at a lower rate, with the figure hovering around 10%, still a remarkable development compared to the job market situation of only a few years ago.

In presenting the revised forecasts, IOBE General Director Nikos Vettas said a “negative surprise” is the course of investments in the country for 2023, as they were lower than anticipated and thereby affected forecast growth. He also cited continued challenges vis-à-vis fiscal policy, despite positive developments.

Specifically, Mr. Vettas cited an interventionist state policy over recent years, going from mass subsidies funneled to individuals and businesses during the pandemic, to intercession in the markets due to surging cost hikes for basic goods, including foods and energy.