The Greek economy continues to deliver strong results, with the primary
The Greek economy continues to deliver strong results, with the primary surplus reaching 5.1% of GDP in 2024 and expanding to 6.5% of GDP on a 12-month basis through July 2025, according to a report by European investment bank WOOD & Company.
The robust fiscal performance of the Greek economy is mainly attributed to higher tax revenues and the significant contribution from the Attiki Odos motorway concession agreement (€3.3 billion). On the expenditure side, spending fell by 0.7 percentage points of GDP, primarily due to reductions in pensions and social benefits.
Efforts to improve tax compliance have also paid off, with corporate income tax receipts rising by 1 percentage point of GDP and personal income tax revenues increasing by 0.6 percentage points. However, Wood & Company noted that Greece still carries a relatively heavy tax burden, with high tax rates and a narrow tax base.
The bank’s assessment has not changed despite the latest announcements from the Greek government, with the new package aimed at redistributing the gains from economic reform efforts and easing voter discontent after the impact of inflation.
The budget continues to outperform expectations. While the government’s cautious approach to fiscal easing highlights its commitment to
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