{"id":115362,"date":"2025-11-01T04:54:18","date_gmt":"2025-11-01T04:54:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/115362\/"},"modified":"2025-11-01T04:54:18","modified_gmt":"2025-11-01T04:54:18","slug":"whats-the-future-of-the-greek-economy-after-eu-funds-dry-up","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/115362\/","title":{"rendered":"What&#8217;s the Future of the Greek Economy After EU Funds Dry Up?"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2025\/11\/acropolis-parthenon-no-scaffold-greek-ministry-culture.jpg\" alt=\"Acropolis free of scaffold\" width=\"1536\" height=\"1229\"  \/><\/p>\n<p>EU\u2019s Recovery and Resilience Facility (RRF) nears its effective conclusion next year. Credit: Greek Ministry of Culture<\/p>\n<p>A growing chorus of economic analysts is raising concerns over the sustainability of <a href=\"https:\/\/greekreporter.com\/greece\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Greece\" target=\"_blank\" rel=\"noopener nofollow\">Greece<\/a>\u2019s GDP growth, particularly as the massive financial boost from the <a href=\"https:\/\/commission.europa.eu\/business-economy-euro\/economic-recovery\/recovery-and-resilience-facility_en\" target=\"_blank\" rel=\"noopener nofollow\">EU\u2019s Recovery and Resilience Facility<\/a> (RRF) nears its effective conclusion next year.<\/p>\n<p>The Greek economy, though <a href=\"https:\/\/greekreporter.com\/2025\/10\/15\/imf-lowers-greece-growth-forecast\/\" rel=\"nofollow noopener\" target=\"_blank\">it enjoys a period of expansion<\/a>, is showing signs of fatigue, according to the <a href=\"https:\/\/www.iobe.gr\/\" target=\"_blank\" rel=\"noopener nofollow\">Foundation for Economic and Industrial Research (IOBE)<\/a>. Professor Nikos Vettas, the Director General of IOBE, issued a stark warning: the annual GDP growth rate could gradually decline toward a meager one percent over the next five years once the RRF funding tap is turned off.<\/p>\n<p>Key concerns from top economic bodies<\/p>\n<p>Leading institutions are all highlighting the same critical challenge: sustaining momentum without the extraordinary EU support.<\/p>\n<p>IOBE\u2019s recent report centers on one core issue: how to fundamentally boost investments in Greece, especially after the RRF period ends. This concern was recently echoed by Bank of Greece Governor Yannis Stournaras during a speech at the University of Athens.<\/p>\n<p>The European Commission projects Greece will grow slightly above two percent annually between 2025\u20132027. However, it forecasts that growth will then fall below two percent due to chronic structural issues, chief among them an aging population and dysfunctions in the labor market.<\/p>\n<p>The OECD currently forecasts Greek growth at 2.1 percent for 2026, crediting the RRF. Yet, it suggests that maintaining this pace in subsequent years will be difficult, implying downward revisions in its future growth predictions.<\/p>\n<p>Related:\u00a0<a title=\"Tourism Alone Won\u2019t Save Greece: Why a Complex Economy Is Urgently Needed\" href=\"https:\/\/greekreporter.com\/2025\/06\/21\/greece-need-move-complex-economy\/\" rel=\"bookmark nofollow noopener\" target=\"_blank\">Tourism Alone Won\u2019t Save Greece: Why a Complex Economy Is Urgently Needed<\/a><\/p>\n<p>Greek economy: The investment conundrum<\/p>\n<p>The RRF\u2019s power as a growth catalyst is undeniable. Capital Economics estimates the Next Generation EU (NGEU) program, which includes the RRF, will boost the GDP of Southern European countries by 1\u20131.5 percent over its six-year run. The funds have been a crucial lever, particularly for digital and green investments.<\/p>\n<p>IOBE projects total investments to increase by 7.5 percent this year and a sharp 10 percent in 2026, clearly driven by the RRF\u2019s peak period. The problem, as analysts emphasize, is what happens after the current boom cycle. While the NGEU program officially concludes in 2026, analysts believe its positive effects will continue to diffuse over the following years, preventing a rapid \u201chard landing\u201d for investment activity.<\/p>\n<p>The challenge for the Greek economy<\/p>\n<p>The immediate challenge, IOBE asserts, is to strengthen the Greek economy in a way that allows for sustainably high growth rates in the medium term, amid significant global instabilities.<\/p>\n<p>The biggest bet for the coming years is the transition to a new, sustainable, productive model. This new model must be fundamentally based on:<\/p>\n<p>Technology and innovation<br \/>\nExport growth<br \/>\nIncreased savings<br \/>\nA shift to higher value-added products<\/p>\n<p>The RRF has been an essential investment tool, but its true effectiveness will only be measured by whether it successfully catalyzes this necessary transition, allowing Greece to stand on its own feet once the massive influx of EU capital subsides.<\/p>\n<p>Related:\u00a0<a title=\"Greece Has Become a \u201cCaf\u00e9 Economy,\u201d LSE Study Finds\" href=\"https:\/\/greekreporter.com\/2025\/10\/21\/greece-cafe-economy-lse-study\/\" rel=\"bookmark nofollow noopener\" target=\"_blank\">Greece Has Become a \u201cCaf\u00e9 Economy,\u201d LSE Study Finds<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"EU\u2019s Recovery and Resilience Facility (RRF) nears its effective conclusion next year. Credit: Greek Ministry of Culture A&hellip;\n","protected":false},"author":2,"featured_media":115363,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":["post-115362","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/115362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=115362"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/115362\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/115363"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=115362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=115362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=115362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}