Greece enters the second half of the decade with a surprising economic outlook, having witnessed a continuous decline in debt, a fall in inflation, and a thriving tourism sector driven by international service demand. Since 2021, its economy has outpaced the Eurozone, underscoring a significant turnaround amid previous financial struggles and commitments to austerity measures.

However, a recent webinar hosted by Oxford Economics warns that while domestic demand is fueling economic growth, it is simultaneously increasing imports, causing potential trade imbalances. The investments from the Recovery and Resilience Facility (RRF) are seen as a temporary boost rather than sustainable, with forecasts indicating a slowdown in growth by 2027. The complexities within GDP composition also raise caution, as factors like inventory changes and statistical discrepancies can overshadow true economic health.

The crucial scenario presented by Paolo Grignani, a senior economist at Oxford Economics, identifies domestic demand as the main driver of growth, but highlights concerns over the clarity and sustainability of this growth. The potential risks of high dependence on imports and vulnerability to external economic conditions need to be acknowledged to maintain and enhance the gains made in recent years, particularly to ensure Greece does not revert to previous challenges post-2027.