Greece: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Greece
IMF Staff Country Reports, April 7, 2025
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- Greece: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Greece
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Bibliographic details
- Published: April 7, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229004589.002
Near-term outlook
- Greece’s near-term economic outlook remains favorable, establishing a solid foundation to address remaining crisis legacies and structural imbalances necessary for achieving sustainable growth in the medium to long term.
- The right policy mix and ambitious reforms to address supply-side structural impediments are essential for sustaining high growth, ensuring fiscal sustainability, and safeguarding financial stability.
Fiscal policy and public debt sustainability
- Maintaining primary surpluses above 2 percent of gross domestic product (GDP) in the medium term will further enhance public debt sustainability and build buffers against future shocks.
- Given substantial investment needs, fiscal policy should prioritize public investment to achieve sustainable growth.
Investment needs: green transition and energy security
- Substantial investment needs are highlighted, especially for the green transition and energy security.
- Public investment prioritization is recommended to support sustainable medium- to long-term growth.
Labor market and human capital
- Raising labor force participation, particularly for women, is essential for enhancing growth prospects.
- Cultivating a better-skilled workforce is required to improve medium- to long-term growth potential.
Financial stability and credit risks
- Credit growth is accelerating, prompting a need for strengthened monitoring of risks associated with credit exposure.
- Borrower-based measures for mortgages and the counter-cyclical capital buffer should be calibrated to align with emerging risks.
Key policy recommendations (enumerated)
- Implement ambitious supply-side reforms to remove structural impediments to growth.
- Maintain primary surpluses above 2 percent of GDP in the medium term to enhance debt sustainability.
- Prioritize public investment, with emphasis on the green transition and energy security.
- Raise labor force participation, with targeted measures to increase women's participation.
- Improve workforce skills through education and training policies.
- Strengthen monitoring of credit risks amid accelerating credit growth.
- Calibrate borrower-based mortgage measures and the counter-cyclical capital buffer in line with emerging risks.
Greece: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Greece (April 7, 2025).
Content in this bundle
- 1. Recent Developments—Robust Growth