The end of the Recovery Fund this summer will lead the Greek economy to low growth rates, according to the latest forecasts of international organizations.
Last week the European Commission, as part of the European semester, removed Greece country from the regime of macroeconomic imbalances, but warned about delays in reforms. Without them, the distance of about 30% from the European Union average GDP per capita cannot be covered, and economic analysts in Greece agree.
Brussels now predicts a decline in the growth rate of the Greek economy to 1.6% in 2027, from 1.8% this year, following the corresponding estimate by the IMF (1.7% in 2027 versus 1.8% this year).
“After the end of the Recovery Fund, the question is not just to continue investments, but to change the mechanism that feeds them,” says Panagiotis Kapopoulos, chief economist of Alpha Bank. “This means the economy must shift from a growth model based on public and European resources to one that systematically mobilizes private capital. To achieve this, priority is given to reforms that improve the business environment and financing, such as reducing red tape, faster administration of justice and strengthening capital markets, as well as interventions that increase productivity.”
