IMF Projects Greek Growth to Double Eurozone Average

The International Monetary Fund projects the Greek economy will grow by 1.8% in 2026 and 2027, a rate nearly double the average for the eurozone. While the fund is optimistic about the labor market, forecasting unemployment to drop to 8% in 2026 and 7.6% in 2027, it warns that inflation will remain a primary challenge. The IMF expects inflation to reach 4.2% in 2026 and 3.6% in 2027, figures that significantly exceed the 2% target.

These projections are more pessimistic than those provided by the Greek government in its draft budget, which predicts growth of 2% this year and 2.3% in 2027, with inflation slowing to 2.4% by 2027. The IMF attributes the economic pressure to geopolitical risks and high energy prices, which it expects will widen Greece's current account deficit to 6.6% of GDP in 2026.

In response to rising fuel costs, the Greek government is expected to announce subsidies for diesel fuel and heating oil on October 14. These developments come as Greek officials participate in the annual IMF and World Bank meetings in Bangkok.