Growth in the Greek economy is expected to peak in 2025 and converge thereafter toward potential growth, the Bank of Greece (BoG) said in its "Note on the Greek Economy" released on Friday.

According to the analysis, growth will be mainly driven by private consumption and investment supported by available European resources. Inflation is expected to further decelerate in 2025. 

The fiscal stance in 2024-2026 is expected to be slightly expansionary, on the back of increased investment expenditure financed by the Recovery and Resilience Fund. The risks surrounding the growth projections are mainly downward, and primarily related to climate change and elevated global policy uncertainty that could lead to lower world trade and investment, amid fears of new protectionist policies, BoG said.

(Full report at https://www.bankofgreece.gr/Publications/Note_on_the_Greek_economy_24_January_2025.pdf)