Greece’s Economic Renaissance: Between Tourism Success and Industrial Transformation in 2025
A Robust Economic Recovery
The Greek economy continues to show robust momentum in 2025, with a projected growth of 2.3%, while the labour market has improved significantly, as evidenced by the unemployment rate declining to 8.6% in February.
The first half of 2025 has been particularly successful for Greece’s tourism sector, with total tourism income growing by 11.0% compared to 2024, reaching approximately €7.66 billion. This increase was driven by both EU and non-EU visitors, with earnings from EU-27 countries reaching €4.07 billion and tourists from outside the EU contributing €3.21 billion.
Tourism’s Double-Edged Sword
Greece’s tourism revenues reached an impressive €21.7 billion in 2024, up from €20.6 billion in 2023, positioning the country as one of Europe’s most sought-after destinations. However, this success comes with challenges. The current trajectory of tourism development risks compromising the very elements that make Greece appealing to travelers. Experts emphasize the need for sustainable tourism practices to preserve the environment, safeguard local culture, and maintain residents’ quality of life.
Push for Economic Diversification
As Greece continues to lose its manufacturing industry and becomes increasingly dependent on the service sector, experts argue that an urgent restart and shift to a complex economy is crucial for the country’s economic viability. A complex economy would be interconnected with other industries, sharing common infrastructure, resources, and solid interdependencies in production and supply chains.
Future Outlook
Looking ahead, the Greek economy is projected to maintain its growth momentum through 2026, with inflation expected to moderate to 2.3%. The country’s debt-to-GDP ratio continues to improve, with expectations of reaching 140.6% by 2026. The key challenge for Greece remains finding ways to maintain the delicate balance between economic development and preservation of its unique assets. With appropriate strategies and commitment to sustainable practices, the country can ensure its tourism industry thrives while protecting its landscapes, communities, and culture for future generations.
