Greece’s government on Wednesday tabled in Parliament the draft budget for 2025 that foresees strong growth and an increase in investment.
Parliament President Konstantinos Tasoulas announced four sessions for discussion of the draft budget in the Parliamentary Committee for Economic Affairs in the last week of November, while the debate before the plenary is to begin on December 11 and end with a vote on Sunday, December 15.
The Greek economy is proving to be resilient in an unfavorable and uncertain international environment, according to the introduction to the budget.
Key Highlights of the 2025 Budget in Greece
It predicts strong growth, an “explosion” of investment, a percentage increase in exports that is greater than that of imports, a de-escalation of inflation and a further reduction in unemployment.
In particular, the draft budget forecasts that GDP will rise by 2.3 percent in 2025, from 2.2 percent in 2024.
Private investment is expected to increase by 6.7 percent in 2024 and 8.4 percent in 2025, up from 6.6 percent last year.
The unemployment rate is predicted to decrease from 11.1 percent in 2023 and 10.3 percent in 2024 to 9.7 percent in 2025. Employment is forecast to grow by 0.7 percent in 2025, from 1.2 percent in 2023 year and 1.1 percent this year.
GDP in absolute terms is expected to increase by around 10 billion euros in 2025, while the ratio of General Government debt to GDP is expected to decrease from 163.9 percent in 2023 to 154 percent in 2024 and further to 147.5 percent in 2025. A primary surplus of 2.5 percent of GDP in 2024 and 2.4 percent of GDP in 2025 is forecast.
Inflation, from an average of 3.5 percent last year, is expected to be 2.7 percent this year and slow to 2.1 percent in 2025.
Private consumption will rise from 2.3 percent in 2023 and 2.2 percent this year to 2.3 percent in 2025.
Public consumption, by contrast, will be limited from 1.8 percent last year, to 1.7 percent this year and to 1.6 percent in 2025.
Exports of goods and services will increase from 1.9 percent last year, by 5.4 percent this year and by 4 percent in 2025.
Ιmports of goods and services will increase from 0.9 percent in 2023 to 4 percent this year and by 3.6 percent in 2025.
2025 budget tabled on the day of national strike
The 2025 budget was tabled on the day Greek unions staged a nationwide strike to protest rising prices and low wages.
Union leaders criticized the government for failing to address escalating inflation and inadequate housing policies which have eroded workers’ living standards.
Giannis Panagopoulos, president of GSEE, said that unions have no other way to protest against price rises, as the “government turns a deaf ear.” He added that workers’ incomes remain frozen.
Although the Greek economy has boomed, outpacing growth in the rest of the Eurozone, workers feel they are left behind.
Related: Greece’s Growth at 2.3 Percent in Q2, Second Biggest in the EU
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