Greek Government Focuses on Investments, Exports to Drive Economic Growth

The Greek government’s top priorities for 2025 include boosting investment, enhancing exports, fostering healthy market competition, and improving the competitiveness of the national economy, according to Kostis Hatzidakis, Minister of Economy and Finance.

Speaking at The World Ahead 2025: Athens Gala Dinner, organized by The Economist, Hatzidakis highlighted the government’s progress in stabilizing macroeconomic figures. He noted that the focus is now shifting toward microeconomic parameters, with the goal of creating sustainable, long-term growth.

Investment Priorities

For 2025, Hatzidakis outlined several key initiatives aimed at boosting investment:

– Improving the business climate: This will be achieved by advancing local city plans, completing the National Land Registry, and accelerating court decisions. The new Development Law will also provide additional tax incentives to attract investment.
– Enhancing access to funding: By fostering a more competitive banking sector and upgrading the Greek stock and money markets, the government aims to increase access to financing. The Recovery Facility, the Development Bank, and the National Investment Fund will also play a key role in facilitating business funding.

Export Growth

In line with its economic strategy, Greece is targeting new and promising markets, particularly in India and China. The government is also focusing on:

– Funding tools for export-oriented businesses: A 200-million-euro program for small and medium-sized businesses was recently launched to assist their international expansion.
– Streamlining processes: Simplifying and digitalizing customs processes will make it easier for companies to export their products. Additionally, tax incentives are under consideration to support sectors with high export potential.

Economy Minister Kostis Hatzidakis at the podium of The World Ahead 2025: Athens Gala Dinner. Photo source: Economy Ministry

Strengthening Competition

The Greek government remains committed to ensuring fair market practices by intervening where necessary. Hatzidakis pointed to the following initiatives:

– Banking sector reforms: The government has already reduced or eliminated several bank fees.
– Regulating insurance markets: Efforts to limit excessive price hikes in insurance premiums are underway.
– Market entry barriers: The government will continue to identify and address obstacles that limit competition and economic growth.

Enhancing Competitiveness

Improving competitiveness is a central focus for the government, with key initiatives including:

– Reducing non-wage costs: Social security contributions will be reduced by 1 percent in 2025, with a further 0.5 percent reduction planned for 2027.
– Incentives for innovation and mergers: Greece’s new law promoting innovation and mergers offers some of the most competitive incentives in the European Union.
– Energy costs: Continued investment in energy networks aims to reduce energy costs, improving Greece’s competitiveness.
– Skilled workforce: The government is investing in the education and skills development of Greece’s workforce to support innovation and business growth.

Economic Forecast and Social Policy

Calculator, money and pencil close-up on a blurred background, the concept of tax calculations and finance.

Hatzidakis also noted that the government expects to exceed its 2024 budget goals, creating room for additional positive measures. This will likely include further tax reductions for taxpayers who meet their obligations, which will be announced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair (TIF) in the fall.

On the social front, the government aims to improve citizens’ disposable income through a comprehensive and responsible economic policy. The ministry’s social initiatives for 2025 include seven income increases, a 74 percent increase in public health expenditure since 2019, and a rationalization of social assistance to ensure aid reaches those most in need.

Key economic accomplishments

Reflecting on recent economic achievements, Hatzidakis highlighted:

– A 64 percent increase in investment, surpassing the EU average.
– A doubling of exports since pre-pandemic levels, with exports expected to exceed 100 billion euros in 2024.
– Significant improvements in market regulation, as evidenced by the OECD Product Market Regulation Index.
– The reduction of 70 tax categories, supporting businesses and individuals.

“Greece remains one of the few sources of positive news in a turbulent international environment,” Hatzidakis concluded, highlighting that the country’s economic success and political stability are not temporary, but rather the result of sustainable and rational policies.