Greece's IOBE Keeps 2026 GDP Growth Forecast At 1.8%, Cuts 2027 View
Oct 15 (Reuters) — Greece's economic research institute IOBE on Thursday kept its forecast for economic growth in 2026 at 1.8% but trimmed its 2027 projection to 1.9% from 2.0%. The economy expanded 1.9% year-on-year in the second quarter of 2026, slightly slower than the previous quarter's 2.0%, while private consumption remained resilient, IOBE said. Private consumption will remain the main growth driver despite pressure from higher energy costs and inflation, it said. The think-tank cited risks including geopolitical tensions, political uncertainty in Europe, possible delays in absorbing EU recovery funds and persistently higher inflation compared to the eurozone average. Expects inflation at about 4.0% in 2026, up from 2.9% in 2025, driven by higher energy prices amid Middle East tensions, before easing to around 3.0% in 2027. Sees unemployment rate at 8.6% in 2026 and 7.8% in 2027. Also expects public debt to fall to 136.7% of GDP in 2026 and 128.8% in 2027. (Reporting by Antonis Pothitos; Editing by Philippa Fletcher) ((antonis.pothitos@thomsonreuters.com; +48 58 769 65 78;)
Oct 15 (Reuters) — Greece's economic research institute IOBE on Thursday kept its forecast for economic growth in 2026 at 1.8% but trimmed its 2027 projection to 1.9% from 2.0%. The economy expanded 1.9% year-on-year in the second quarter of 2026, slightly slower than the previous quarter's 2.0%, while private consumption remained resilient, IOBE said. Private consumption will remain the main growth driver despite pressure from higher energy costs and inflation, it said.
The think-tank cited risks including geopolitical tensions, political uncertainty in Europe, possible delays in absorbing EU recovery funds and persistently higher inflation compared to the eurozone average. Expects inflation at about 4.0% in 2026, up from 2.9% in 2025, driven by higher energy prices amid Middle East tensions, before easing to around 3.0% in 2027. Sees unemployment rate at 8.6% in 2026 and 7.8% in 2027. Also expects public debt to fall to 136.7% of GDP in 2026 and 128.8% in 2027.
(Reporting by Antonis Pothitos; Editing by Philippa Fletcher) ((antonis.pothitos@thomsonreuters.com; +48 58 769 65 78;)