Greece is flourishing: tourism is booming, the economy is growing strongly!

Greece is flourishing: tourism is booming, the economy is growing strongly!

Greece has experienced a remarkable economic boom in recent years, driven primarily by the booming tourism sector. Until a few years ago, the country was characterized by the euro crisis, national debt and corruption. Today, however, a different picture emerges: the number of tourists is increasing and the economy is growing. Tourism now accounts for 30% of gross domestic product, making Greece a small but heavily reliant economy on the sector, according to Christian Kopf, head of fixed income markets at Union Investment.

The Greek financial crisis of 2011, which was caused by high national debt and significant budget deficits, appears to have been overcome. A default and the use of emergency loans led to the economic situation stabilizing. Greece has restructured its budget and can now finance itself again on the capital market at more favorable conditions. Investments in infrastructure in particular have attracted foreign investors and Germany remains the largest investor in the country with 20%.

Growth and investment opportunities

The Greek economy recorded growth of 2.3% in 2024, which is above the EU average. This recovery is expected to continue next year as the National Bank of Greece forecasts a moderate economic recovery of 2.3 to 2.5%. Investments and private consumption play a crucial role. Greece is also attracting greater investments in future markets such as digitalization, energy and the healthcare sector.

The record number of 40 million tourists who visited Greece last year underpins the booming tourism sector. Tourism revenue rose to 21.7 billion euros, an increase of 5.4% compared to the previous year. These figures show that tourism not only acts as a growth engine, but also strengthens trust in the private sector. Modernization through digitalization has also contributed to the fight against undeclared work and tax evasion.

Criticism and challenges

Despite the positive developments, there are also challenges. Critics express concerns about the issuance of “golden visas,” which enable Chinese investors to receive a Schengen visa for investments of more than 400,000 euros. In large cities and on populated islands this amount was increased to 800,000 euros. So far, these “golden visas” have brought up to three billion euros into the country, which is positive on the one hand, but also raises questions about social justice.

Meanwhile, the political landscape remains stable, even if Prime Minister Mitsotakis's approval ratings have fallen recently. Despite these political challenges, Greece remains the most popular holiday destination for Austrians and offers numerous opportunities for the future through large infrastructure projects as well as investments in sustainability and digitalization.

For more detailed information on the current economic situation in Greece and support for companies, the Athens Foreign Trade Center offers tailor-made advice. A comprehensive country profile is available on the AUSSENWIRTSCHAFT AUSTRIA website.