## IMF Executive Board Concludes 2026 Article IV Consultation with Greece _IMF News, May 27, 2026_ ## Source details **Canonical URL:** [IMF Executive Board Concludes 2026 Article IV Consultation with Greece](https://www.imf.org/en/news/articles/2026/05/27/pr26169-greece-imf-executive-board-concludes-2026-article-iv-consultation) ## Other formats - [Markdown version](/en/news/articles/2026/05/27/pr26169-greece-imf-executive-board-concludes-2026-article-iv-consultation/index.md) - [Structured JSON version](/en/news/articles/2026/05/27/pr26169-greece-imf-executive-board-concludes-2026-article-iv-consultation/index.json) - [Bundle manifest](/en/news/articles/2026/05/27/pr26169-greece-imf-executive-board-concludes-2026-article-iv-consultation/bundle-manifest.json) ## Bibliographic details - Published: May 27, 2026 --- ### Summary - Greece met the shock from the war in the Middle East with strengthened fiscal sustainability and financial stability. - The right macroeconomic and financial policy mix would help preserve macro-financial stability and foster balanced and sustainable growth in the medium term. - Ambitious structural reforms, along with completing the EU Single Market, would support growth sustainably at a high level and reduce the persistent current account deficit. - The authorities have consented to the publication of the Staff Report prepared for this consultation. - The 2026 Financial Sector Assessment Program (FSAP)—the first since 2006—finds that systemic risks in the financial sector were low prior to the war and remain manageable. ### Growth and outlook - GDP growth is projected to soften to 1.8 percent in 2026. - Growth drivers: higher public investment and household support measures. - Headwinds: elevated energy prices and weaker external demand stemming from the war, weighing on private consumption and tourism. - Medium-term forecast: growth is forecast to ease to 1½ percent, reflecting a declining working age population, low labor force participation, and sluggish productivity growth. - Risks: tilted downward, especially from a protracted war, escalation of geopolitical tensions, and trade fragmentation; domestic risk includes delays in the execution of NGEU-funded projects. - Inflation upside risks: further rises in commodity prices, wage growth outpacing labor productivity, and higher costs associated with climate shocks. ### Fiscal position and public debt - Recent reforms to reduce tax evasion have broadened the tax base and reduced informality, creating some space to support households’ disposable income while ensuring a rapid public debt reduction. - Directors commended continued very strong fiscal performance underpinned by reforms to reduce tax evasion, supporting a sustained reduction in public debt and providing room for temporary measures to mitigate higher energy prices. - Policy guidance: - Maintain primary surpluses. - Make full use of available EU funds to sustain public investment beyond NGEU. - Focus on efficient public investment and safeguard social spending. - Ensure energy price responses are well targeted, temporary, and preserve price signals. - Further advance fiscal structural reforms to enhance fiscal policy effectiveness. ### Financial sector and stability - 2026 FSAP finds systemic risks were low prior to the war and remain manageable. - Banking system demonstrates resilience under stress tests. - Directors’ recommendations: - Closely monitor common exposures to large firms. - Improve resolution of legacy distressed debt outside the banking system and strengthen supervision of credit servicers. - Strengthen crisis preparedness and the financial safety net. - Continue enhancing the quality of bank capital. - Consider additional macroprudential buffers to bolster resilience while avoiding procyclicality. ### Structural reforms and competitiveness - Directors emphasized ambitious structural reforms to support higher, more inclusive, and productivity-driven growth and reduce persistent current account deficits. - Recommended reforms: - Advance digital transformation. - Further reduce regulatory and administrative burdens to promote competition and boost productivity. - Raise labor force participation and improve workforce skills to counter demographic pressures. - Complete the EU single market to raise productivity and improve economic resilience. - Implement housing policies to mobilize existing supply more effectively, complemented by well-calibrated demand measures, to improve housing affordability. - Take steps to achieve energy security. ### Executive Board assessment - Directors welcomed solid macroeconomic growth, restored fiscal credibility, and financial stability. - They noted incomplete private sector balance sheet repair and remaining structural impediments that weigh on medium-term growth and external balances. - Directors called for the right macroeconomic and financial policy mix and completion of the structural reform agenda to lock in stability, lift supply constraints, and secure balanced and sustainable growth. ### Selected economic indicators (as reported) - Population (millions): 10.4 - Per capita GDP (€'000): 23.9 - IMF quota (millions of SDRs): 2,428.9 - Literacy rate (percent): 98.0 - (Percent of total): 0.51 - Persons at risk of poverty (percent): 19.6 - GHG emissions per capita (tons of CO2 equivalent): 6.3 Key export markets: EU (Italy, Germany, Cyprus, Bulgaria, Romania, Spain), USA, UK. Main products and exports: tourism and shipping services; food and beverages; petroleum and chemicals. 2025 / 2026 / 2027 (proj.) - Real GDP growth (percent): 2.1 / 1.8 / 1.7 - Unemployment rate (percent): 8.9 / 7.4 / 7.1 - CPI inflation (period avg., percent): 2.9 / 3.5 / 2.7 General government finances (percent of GDP) - Revenue: 50.0 / 49.9 / 48.7 - Expenditure: 48.3 / 49.5 / 49.0 - Overall balance: 0.4 / -0.3 / (no figure for 2027 shown) - Primary balance: 4.9 / 3.6 / 3.0 - Public debt: 146.6 / 136.6 / 130.1 Balance of payments - Current account (percent of GDP): -5.7 / -6.4 / (no figure for 2027 shown) - FDI (percent of GDP): -2.7 / -1.0 / (no figure for 2027 shown) - External debt (percent of GDP): 237.7 / 230.6 / 226.8 Exchange rate - REER (percent change) 1/: 1.6 / … Memorandum item: - Nominal GDP (billions of euros): 248.4 / 260.8 / 272.2 Sources cited in the release: Greek authorities; World Bank, World Development Indicators; Eurostat; IMF, International Finance Statistics, Direction of Trade Statistics, and IMF staff projections. *Press Release No. 26/169. May 27, 2026. IMF Communications Department.* --- ## References - [https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg) - [The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx) - [Greece and the IMF](http://www.imf.org/external/country/GRC/index.htm) - [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance) - [Press Releases](https://www.imf.org/en/news/searchnews) - [PRESS CENTER](http://presscenter.imf.org/) - [http://www.IMF.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm) - [https://www.imf.org/en/home](https://www.imf.org/en/home) _Source: https://www.imf.org/en/news/articles/2026/05/27/pr26169-greece-imf-executive-board-concludes-2026-article-iv-consultation_