Referring to the latest forecasts by the International Monetary Fund (IMF) regarding global economic growth, Mr. George Alogoskoufis emphasized that projections have been significantly revised downward, with global growth estimated at 2.9% for the years 2025–2026. While accommodative monetary policies have contributed to a decline in inflation, growing trade tensions between the United States and China, as well as weak growth in emerging economies, remain key challenges for the future.
Forecasts for the European economy remain subdued, with growth in the euro area expected to reach 0.8% in 2025 and 1.2% in 2026. Major concerns include the imposition of new U.S. tariffs affecting exports and ongoing political uncertainty in major economies such as Germany and France. With regard to the Greek economy, growth is projected at 2% in 2025 and 1.8% in 2026, while the unemployment rate is expected to reach 9.4% in 2025 and 9% in 2026.
According to the former Minister of Finance, the main challenges for Greece include labor shortages—particularly in the tourism sector, where there is a shortfall of approximately 80,000 workers—as well as issues of productivity and international competitiveness. “In conclusion,” he stated, “there are growing concerns that trade tensions could significantly worsen the global economic environment, while Europe remains in a phase of low growth and is under both political and trade-related pressure. As for Greece, the country maintains a dynamic growth trajectory, but must address low productivity, labor shortages, and external imbalances.” He stressed that “we must not become complacent simply because we are currently outperforming, as Greece experienced a severe crisis during which it lost 25% of its GDP. For this reason, we must do more to recover the lost ground.”
Structural Issues in the Greek Economic Model
In a discussion with journalist Zois Tsolis of Protagon.gr, Mr. Alogoskoufis commented on Greece’s production model, noting that it is not well-suited for competition within a broader market such as the eurozone. “Our economy is based largely on non-tradable goods and lacks sufficient momentum in sectors such as new technologies, digital services, and high-tech products,” he remarked. “As a result, whenever the Greek economy appears to accelerate, imbalances in the external sector arise. The major challenge lies in how we can adapt our tax model in such a way that it reduces the demand for labor—especially given that the population is in decline.”
Concerns Regarding Urban Planning Legislation (NOK)
When asked about the Urban Planning Code (ΝΟΚ), Mr. Alogoskoufis responded that the issue is significant, particularly in light of recent decisions by the Council of State. “Similar problems have occurred in the past, where judicial rulings overturned investment initiatives and environmental planning projects. This is not solely a matter of governmental policy—there must be safeguards to ensure that enacted legislation cannot be arbitrarily overturned. One possible solution would be to consult the Council of State beforehand, as is the case with presidential decrees. A similar process could be implemented for critical laws such as the NOK, given that the investment climate in Greece is heavily affected by such uncertainties. This is a broader institutional issue,” he concluded.
