Greece’s economic growth outlook is set to surpass that of the
Greece’s economic growth outlook is set to surpass that of the eurozone’s core economies, according to a recent analysis by Capital Economics. However, a persistent labor shortage is expected to constrain growth, preventing it from reaching the levels seen in other so-called “peripheral” economies.
The world economic company adds that this situation could also lead to a further slowdown in Greece‘s growth, affected by the declining numbers of the working-age population, and the persistently low migration figures.
The Greek economy has been among the top performers in Europe in recent years. In the fourth quarter, Greece’s GDP was 9.7% higher than its pre-pandemic level, while the overall eurozone economy had expanded by only 4.7%.
As Capital Economics explains, Greece’s outperformance has been supported by a significant improvement in employment, which increased by 8.0% between the fourth quarter of 2019 and the third quarter of 2024.
This employment growth, however, is entirely due to a decline in the unemployment rate rather than an increase in the size of the labor force.
In fact, the country’s unemployment rate dropped from 17% in December 2019 to 9.4% in December 2024, the lowest level since the Global Financial Crisis. However, during this period, the
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