Greece

Investment and private consumption remain the drivers of solid growth

The Greek economy will maintain solid growth and continue to outperform the eurozone average in 2026. Growth is expected to remain buoyant thanks to resilient domestic demand. First, household consumption will continue to be driven by real income growth, supported by tax reforms and inflation moderation. A further increase in the minimum wage is planned from April 2026, the target being €950 in 2027 (compared with €880 in 2025). The higher-than-expected primary surplus (i.e., excluding interest) will provide additional budgetary leeway, mainly aimed at supporting household purchasing power. In September 2025, new expansionary measures were announced by the Prime Minister, including a downward revision of income tax rates. In addition, the labour market continues to trend positively; job numbers are rising and the unemployment rate fell to 8.2% in Q3 2025, which was the lowest level since 2008. Furthermore, investment is expected to accelerate, mainly on back of the disbursement of European funds, particularly for construction. The Recovery and Resilience Facility (the NextGenerationEU’s main instrument), which is allocating EUR 36 billion to Greece, divided equally between grants and loans, will ensure sustained demand for sectors such as infrastructure construction, telecommunications and renewable energy, while generating positive externalities that strengthen potential output. Following approval of the sixth payment request in October 2025, amounting to EUR 2.1 billion in grants, Greece will have received 65% of these funds upon receipt, with the remainder to be paid by the end of the recovery plan in 2026. Similarly, the significant progress made in rolling out structural reforms on taxation, market flexibility, cutting red tape and bureaucracy, and consolidating corporate balance sheets, has helped stabilise investor confidence.

In addition, exports of goods (oil, agricultural, pharmaceutical products), mainly to European partners (nearly 60%), should regain momentum thanks to the gradual recovery in foreign demand. As Greece has little direct exposure to the US market, the risks associated with additional tariffs lie more in the recovery of its main European partners facing more exposure, particularly Italy and Germany. On the services side, the economy will continue to benefit from the robustness of the tourism sector which continued to break records in 2025. At constant prices, tourism revenues increased by 8.9% between January and August 2025 compared to 2024, despite more moderate growth in international arrivals (4.1% compared to an average of 16% over the same period in 2024). Finally, Greece is a world leader in transhipment, and as supply chains regionalise, the role of the Eastern Mediterranean as a hub for regional trade is set to intensify. In November 2025, the Houthis announced the suspension of their attacks in the Red Sea following the ceasefire in Gaza. De-escalating tensions in the region could lead to a gradual return of maritime traffic via the Suez Canal and would therefore benefit Greek shipping, which has been affected in recent years by the diversion of ships around the Cape of Good Hope. However, the stability of the situation in the Red Sea remains extremely fragile, which is delaying a return to the status quo of traffic in the short term.

Public finances continue to recover, but external imbalances remain high

Although Greece's debt ratio is still the highest in the European Union, it has kept on a downward trajectory and poses limited financing risks over the medium term. The favourable structure of the debt (mostly held by public creditors, with low fixed rates and long maturities) has mitigated the impact of monetary tightening in recent years and reduced yield spreads with other sovereign bonds. In March 2025, Moody's was the last of the major rating agencies to raise Greece's credit rating to investment grade, taking it out of the speculative category for the first time since 2010, in contrast to the other leading agencies which already took the step in 2023. In addition, the country has been running a primary surplus since 2022 that is expected to exceed 2% of GDP in 2026 after an upward revision by the government to 3.6% of GDP in 2025. The outperformance of revenues has been made possible in particular by reforms aimed at reducing tax fraud and increasing social security contributions related to labour market dynamics. The positive trajectory is expected to continue despite a weaker budget balance due to the introduction of expansionary measures aimed primarily at supporting household purchasing power, at an estimated cost of EUR 1.8 billion in 2026 (0.7% of GDP). At the same time, the government's substantial cash reserves (accounting for over 15% of GDP) have enabled it to anticipate repayments of European Stability Mechanism loans 10 years ahead of the initial maturity date of 2041 on the first bailout plan. The reduction in its financing needs (below 8% of GDP in 2025) and the low refinancing risk mitigate the liquidity risk. Furthermore, the banking system is nearing the end of a long process of healing the scars left by the euro crisis. The non-performing loans (NPLs) ratio, which reached 30% at the end of 2020, has been below 3% since the end of 2024 and is gradually inching towards the European average of 2%.

The current account deficit is expected to gradually narrow but will remain high due to stronger investment (both public and FDI), which will result in increased imports. Robust domestic demand, both for consumption and investment, will maintain the trade deficit (15% of GDP in 2024) owing to the country's dependence on imports of manufactured goods. However, the prevailing reduction in the raw material import bill, the gradual recovery of European economies and the accumulated gains in competitiveness over the last decade should help improve the trade balance. Furthermore, the country benefits from a surplus in the balance of services (nearly 10% of GDP in 2024), driven by increased tourism revenues but partially reduced by maritime transport activities, which continue to be impacted by traffic disruptions in the Red Sea.

Political stability and ongoing dialogue with Türkiye, but tensions subsist

Prime Minister Kyriakos Mitsotakis secured a second term in office and a comfortable majority in the June 2023 elections. His centre-right, liberal New Democracy (ND) party won with 40.6% of the votes and 158 out of 300 seats in Parliament, thanks to the 50 additional seats granted to the majority.  Opposition parties were left weakened and fragmented, notably the left-wing Syriza which recorded the weakest result for a main opposition party in modern Greek democracy (17.8% of the vote). Although the ND did not achieve the expected results, its dominance in the Greek political scene was confirmed in the European elections in June 2024, when it took a lead of over 13% over its main opponent Syriza. Despite the revelation of a corruption scandal involving the misappropriation of European agricultural subsidies between 2016 and 2023, the lack of credible opposition will allow the government to remain in power until the next general election, which is scheduled for mid-2027. The government will thus be able to continue rolling out the reform and modernisation programme supported by the EU (electrification of the car fleet, digitisation of public services, improving workforce skills, energy efficiency in housing). The Tempi rail accident in 2023 and successive mega-fires have made infrastructure improvement and civil protection management two of its priorities. In addition, the government should focus on improving the population's standard of living in order to respond to its citizens’ concerns.

On the geopolitical front, diplomatic initiatives are being introduced to ease tensions with Türkiye through regular meetings between leaders and politicians. The talks concern long-standing territorial disputes in the Aegean Sea and the Eastern Mediterranean, which are rich in untapped energy resources. Greece's rapid humanitarian efforts to aid Türkiye after the deadly February 2023 earthquake helped restore relations between the two countries. Türkiye followed suit and also offered to help Greece fight the devastating fires during the summer of 2024. This willingness to cooperate had already been showcased in December 2023 with the Turkish president's visit to Athens, which concluded with the signing of bilateral agreements in a number of areas, including tourism (extension of Turkish tourist visas), economics (resolve to double their trade to USD 10 billion) and migration. Joint membership of NATO and warmer relations with the US on both sides limit the risk of conflict. Despite ongoing dialogue between the two countries, progress remains gradual and tensions persist over Türkiye's repeated claims to exploit gas resources in the eastern Mediterranean and to separate the Turkish Republic of Northern Cyprus from the Republic of Cyprus, which is the only nation recognised by the international community. Furthermore, the Middle East conflict could jeopardise the rapprochement given the range of divergent positions. Greece's determination to pursue the Great Sea Interconnector, a maritime electricity interconnection project with Cyprus, and later Israel, has reignited Turkish claims in the Eastern Mediterranean. Initially scheduled to take place in early 2025, the meeting of the Greek-Turkish High Level Cooperation Council has been postponed several times.

Payment

Bills of exchange, as well as promissory letters, are used by Greek companies in domestic and international transactions. In the event of payment default, a protest certifying the dishonoured bill must be drawn up by a public notary within two working days of the due date.

Similarly, cheques are still widely used in international transactions. In the domestic business environment, however, cheques are customarily used less as an instrument of payment, and more as a credit instrument, making it possible to create successive payment due dates. It is therefore a common and widespread practice for several creditors to endorse post-dated cheques. Furthermore, issuers of dishonoured cheques may be liable to prosecution provided a complaint is lodged.

Promissory letters (hyposhetiki epistoli) are another means of payment used by Greek companies in international transactions. They are a written acknowledgement of an obligation to pay, issued to the creditor by the customer’s bank, committing the originator to pay the creditor at a contractually fixed date. Although promissory letters are a sufficiently effective instrument in that they constitute a clear acknowledgement of debt on the part of the buyer, they are not deemed a bill of exchange and so fall outside the scope of the “exchange law”.

SWIFT bank transfers, well established in Greek banking circles, are used to settle a growing proportion of transactions and offer a quick and secure method of payment. SEPA bank transfers are also becoming more popular, as they are fast, secured and supported by a more developed banking network.

In 2015, Greece imposed restrictions on flows of capital outside the country. All payments directed abroad follow a specific procedure, and are monitored by the banks and the Ministry of Finance, with restrictions placed on the amount and nature of the transfer.

Debt Collection

Amicable phase

Before initiating proceedings in front of the competent court, an alternative method to recover a debt is to try to agree with the debtor on a settlement plan. Reaching the most beneficial arrangement can usually be achieved by means of a negotiating process.

The recovery process commences with the debtor being sent a final demand for payment via a registered letter, reminding him of his payment obligations, including any interest penalties as may have been contractually agreed – or, failing this, those accruing at the legal rate of interest. Interest is due from the day following the date of payment stipulated in the invoice or commercial agreement at a rate, unless the parties agree otherwise, equal to the European Central Bank’s refinancing rate, plus seven percentage points.

Legal proceedings

Fast track proceedings

Ordinary proceedings

Where creditors do not have written and clear acknowledgement of non-payment from the debtor, or where the claim is disputed, the only remaining alternative is to obtain a summons under ordinary proceedings. The creditor files a claim with the court, who serves the debtor within 60 days. The hearing would be set at least eighteen months later. Greek law allows the court to render a default judgment if the respondent fails to file a defence. Since 2016, the lawsuit procedure has been changed, and is now based exclusively on documentation provided to support the claim.

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Enforcement of a Legal Decision

Enforcement of a domestic decision may commence once it is final. If the debtor fails to satisfy the judgment, the latter is enforceable directly through the attachment of the debtor’s assets.

For foreign awards rendered in an EU member state, Greece has adopted advantageous enforcement conditions such as the EU Payment Orders or the European Enforcement Order. For decisions rendered by non EU countries, they will be automatically enforced according to reciprocal enforcement treaties. In the absence of an agreement, exequatur proceedings will take place.

Insolvency Proceedings

RESTRUCTURING PROCEEDINGS

This procedure aims to help the debtor restore its credibility and viability, and continue its operations beyond bankruptcy. The debtor negotiates an agreement with its creditors. During this procedure, claims and enforcement actions against the debtor may be stayed but the court will appoint an administrator to control the debtor’s assets and performances. The reorganisation process starts with the debtor’s submission of a plan to the court made by specialists, which conducts a judicial review of the proposed plan whilst a court-appointed mediator assesses the creditors’ expectations. The plan can only be validated upon approval by creditors representing 60% of the total debt. (60% is not always applicable, depending on the case and approval by the bank).

LIQUIDATION

The procedure commences with an insolvency petition either by the debtor or the creditor. The court appoints an administrator as soon as the debts are verified. In addition a Pool of Creditors (three members representing each class of creditors) will be given the responsibility of overseeing the proceedings, which terminate once the proceeds of the sale of the business’ assets are distributed.

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Last updated: November 2025