Greece’s economic growth slowed sharply in the second quarter of 2025. Credit: Greek Reporter
Greece’s economic growth showed signs of slowing in the second quarter of 2025, expanding by 1.7% year-on-year, compared with 2.2% in the first quarter.
The weaker performance casts doubt on the government’s forecast of 2.3% annual growth, making upcoming data releases critical for determining whether this goal can still be achieved.
According to seasonally adjusted data, Greece’s GDP in volume terms grew by 0.6% compared to first quarter, while the year-on-year increase was 1.7%.
Data Revisions Expected
The Hellenic Statistical Authority (ELSTAT) noted that the second quarter figures are preliminary and will likely be revised when third quarter’s data is published, as additional primary sources become available, including government accounts, subsidy data, agricultural statistics, short-term indicators, and labor market figures.
Further revisions are also scheduled for October 16, 2025, when quarterly national accounts will be benchmarked against updated annual national accounts.
Key Quarterly Changes
- Final consumption expenditure declined by 0.1% compared with the first quarter of 2025.
- Gross fixed capital formation rose sharply by 7.4%.
- Exports of goods and services increased by 1.3%. Within this, exports of goods slipped 0.03%, while exports of services grew 2.6%.
- Imports of goods and services fell by 0.9%, with goods down 0.8% and services down 2.0%.
Key Annual Changes
- Final consumption expenditure rose by 1.0% compared with the second quarter of 2024.
- Gross fixed capital formation increased by 6.5%.
- Exports of goods and services grew 1.9%, with goods down 1.1% but services up 3.9%.
- Imports of goods and services contracted by 3.2%, driven by a 4.8% decline in goods imports, while imports of services rose 1.5%.
Balancing Risks and Resilience
The data highlights both vulnerabilities and resilience in Greece’s economic growth. While private consumption showed weakness, investment and service exports provided some support. The decline in imports also partially offset weaker domestic demand.
Economists caution that maintaining momentum will be crucial for Greece to meet its annual growth target. With revisions due in the coming months, policymakers and markets will closely monitor whether structural improvements can offset signs of slowing domestic consumption.