Greece

The 2026 Article IV Consultation discusses that Greece met the shock from the war in the Middle East with strengthened fiscal sustainability and financial stability. Public sector balance sheets continue to improve, with the public debt-to-gross domestic product (GDP) ratio declining rapidly, creating some policy space to meet external challenges. However, private sector balance sheet repair is incomplete and structural impediments—low overall investment, sluggish productivity growth, and unfavorable demographics—weigh on medium-term growth and external balances. The quality of bank capital should continue to be improved, while further increase of macroprudential capital requirements could be considered in response to high large exposure concentration. The right macroeconomic and financial policy mix would help preserve macro-financial stability and foster balanced and sustainable growth in the medium term. Ambitious structural reforms, along with completing the EU Single Market, would support growth sustainably at a high level and reduce the persistent current account deficit. Advancing digital transformation and further reducing regulatory and administrative burdens would enhance business dynamism, promote competition, and boost productivity.