The Bank of Greece has upgraded its economic outlook, projecting that the country’s growth could reach 2.0% in 2026 and accelerate to 2.1% in both 2027 and 2028 under a favorable scenario.
The central bank also forecasts that inflation will ease from 3.7% in 2026 to 2.5% in 2027, reflecting the stabilizing impact of reduced geopolitical tensions on energy costs.
The central bank’s assessment aligns with broader European trends, where economists have noted a potential boost to domestic economic optimism stemming from the US-Iran accord.
This optimistic revision follows the recent mutual understanding agreement between the United States and Iran, a diplomatic breakthrough confirmed by Pakistan as the intermediary.
The deal marks a significant de-escalation in Middle East tensions, which had previously weighed heavily on global energy markets and European economic sentiment.
With shipping risks in the Strait of Hormuz receding, the pressure on oil and natural gas prices has subsided, providing a tailwind for import-dependent economies like Greece.
The central bank’s assessment aligns with broader European trends, where economists have noted a potential boost to domestic economic optimism stemming from the US-Iran accord.