Greece’s economic recovery remains on track, but mounting global risks—particularly geopolitical
Greece’s economic recovery remains on track, but mounting global risks—particularly geopolitical instability and energy uncertainty—could threaten its growth outlook, according to Yannis Stournaras, governor of the Bank of Greece.
Speaking at an event in Frankfurt, Stournaras highlighted the country’s progress since its debt crisis, noting that sustained fiscal discipline, financial restructuring, and structural reforms have helped restore economic credibility and lay the foundation for long-term growth. However, he warned that external shocks could quickly undermine this trajectory.
War and energy risks in focus
A key concern is the ongoing conflict in the Middle East, which Stournaras described as a potential source of “stagflationary” pressures—combining higher inflation with weaker economic growth—if it persists or escalates.
He stressed that the conflict represents a negative supply shock for both the global economy and the eurozone, particularly through its impact on energy markets. A prolonged crisis could trigger a new energy shock, intensifying inflationary pressures and weighing on economic activity.
Strong performance, but fragile environment
Despite these risks, Greece has posted solid economic results in recent years. Growth has consistently outpaced the eurozone average since 2019, with real GDP expanding by 2.1% in both 2024 and 2025—well above the eurozone’s
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