According to provisional data from ELSTAT, the Greek Gross Domestic Product (GDP) for 2024 grew by 2.3% compared to 2023, outpacing the Eurozone, where the growth rate was just 0.9%.
Sustained Growth in Investments for the Fourth Consecutive Quarter
For an economy to thrive, investment levels must not only compensate for the depreciation of existing capital but also generate sufficient surplus to create new capital. The Greek capital stock for 2024 stands at €657.2 billion, a decrease of €68.5 billion from the historical peak of €725.7 billion in 2010. This represents a capital gap of 9.4% compared to 2010 levels. Under an optimistic scenario, if investments grow at an average annual rate of 6.6% (the historical average from 2017-2024), the capital stock from 2010 will be recovered by 2030. In a more conservative scenario, with an investment growth rate of 4.0%, recovery would take place by 2036.
The significant increase in investments (24.4%) for the fourth consecutive quarter is primarily driven by a rise in inventories. Investments in fixed capital, which contribute directly to the economy’s productive capacity, saw a 9.0% increase. In contrast, public consumption decreased by 3.4%, while imports of goods and services grew by 2.4% (with services rising by 4.8% and goods by 2.0%).
Key Drivers: Housing and Construction Investments
The surge in fixed capital investments is primarily attributed to a 29.1% increase in housing-related expenditures and a 16.3% rise in agricultural product investments. Additional construction projects (buildings and infrastructure, excluding residential housing) also saw an 11.8% increase. Smaller increases were noted in categories such as intellectual property products (+0.2%) and machinery and transport equipment (+3.3%).
The rise in investments in fixed capital can largely be explained by the substantial increase in housing expenditures (+29.1%) and agricultural products (+16.3%). The growth in other construction expenditures (excluding housing) stood at +11.8%, while investments in intellectual property products (+0.2%) and machinery/transport equipment (+3.3%) grew at more moderate rates.
Decline in Housing Welfare Benefits
In 2024, OPEKA (National Organization for the Provision of Welfare Benefits and Social Solidarity) disbursed €3.1 billion in benefits, reflecting an increase of €107 million over the previous year. However, spending on housing benefits decreased by €48 million, and the number of beneficiaries fell by 34,918 compared to 2023.
Strategic Investments in Infrastructure and Ports
In Q1 2025, the Hellenic Development Fund (Growthfund) announced the cancellation of the tender process for the concession of the Port of Volos. Instead, €9 million will be allocated to upgrade and restore the port's infrastructure, funded through the Public Investment Program (PIP), in response to damages caused by the "Daniel" storm. The fund also leaves open the possibility of independently developing the Port of Volos.
Additionally, a protocol has been signed for the sub-concession of the commercial Port of "Filippos B" in Kavala for 40 years. This initiative aims to develop, maintain, and upgrade the port, as well as implement a reforestation project in the Aspro Choma area.
In January, a consortium led by FRAPORT AG was announced as the preferred investor for the operation of Kalamata International Airport "Captain Vassilis Konstantakopoulos," with investments of €28.3 million scheduled for the first three years.
Finally, the Hellenic Republic Asset Development Fund (HRADF) revealed the signing of a contract for the restoration of the operational depths of the Port of Volos, with the work valued at €9.5 million. The restoration includes dredging of the port basin and removal of sedimentation caused by the "Daniel" and "Elias" storms in September 2023.
