Greece 2Q adj. GDP rises 1.7% YY

Greece 2Q adj. GDP rises 1.7% YY

Greece's economy has shown resilience in the second quarter of 2025, with the country's adjusted GDP rising by 1.7% year-over-year (YoY), according to the latest data released by the Hellenic Statistical Authority (ELSTAT). This growth is a testament to the country's ongoing economic recovery and the government's efforts to stimulate growth through targeted policies.

The positive economic performance comes amidst a backdrop of political and economic reforms initiated by Prime Minister Kyriakos Mitsotakis. His administration has been focusing on reducing the tax burden on the middle class, increasing pension benefits, and boosting the minimum wage, all of which are expected to contribute to the overall economic growth.

The Greek government has been able to deliver these reforms due to strong fiscal performance. In the first seven months of 2025, Greece posted a primary surplus of nearly €8 billion ($8.7 billion), nearly double its target, while tax revenues exceeded forecasts by over €2 billion ($2.2 billion) [1]. This robust fiscal performance has provided the necessary fiscal space to implement the relief package aimed at supporting middle-class households and families.

The relief package, which includes significant tax cuts and social benefits, is set to go into effect on January 1, 2026. Key measures include higher tax-free thresholds, expanded child allowances, lower tax rates, and reductions on higher income brackets. Additionally, the government is planning to reduce "deemed income" assessments and adjust property tax (ENFIA) for middle-class taxpayers. These reforms are expected to provide tangible improvements in living standards and signal the government's commitment to fairness and economic stability.

While the economic growth is encouraging, challenges remain. Greece continues to face issues related to its housing market and the overall cost of living. The government's efforts to encourage long-term leases and provide tax relief to property owners are aimed at addressing these challenges.

In conclusion, Greece's 2Q adjusted GDP rise of 1.7% YoY reflects the country's economic recovery and the government's successful implementation of targeted policies. As the relief package takes effect, investors and financial professionals can expect to see further improvements in living standards and economic growth.

References:
[1] https://greekreporter.com/2025/09/04/greece-unveil-relief-package-middle-class/