Greece was at the centre of the European debt crisis in 2010 and has endured years of austerity. A full economic recovery is expected as early as this year, but problems remain, Reuters writes

Greece's economy, after nearly 15 years of a devastating debt crisis that saw austerity, hardship and unrest, could complete a full recovery this year, Reuters writes, citing forecasts by officials and investors.

In 2024, the Greek economy is expected to grow by almost 3%, approaching the pre-crisis 2009 level and well above the eurozone average (+0.8%), the agency notes.

According to the statistical service and the Ministry of Finance of Greece, in 2009 the country's GDP was about € 230 billion, for 7 years after that the figure fell (growth was recorded in 2018-2019), reaching a minimum in 2020 (about € 160 billion). Thereafter, there was an upward trend and in 2022 Greece's GDP exceeded €200bn, it continued to grow in 2023 and reached €210bn at the end of last year.

The cost of borrowing in Greece has fallen to a level lower than in Italy, and all Greek banks previously bailed out will be fully privatised for the first time in decades. Investors see this as a sign of the economy finally normalising.

"The Greek economy is in good shape to benefit from further growth," said Wim-Hein Pals of management company Robeco, which recently bought shares in Greek banks.

Greece was at the centre of the European debt crisis in 2010 (it also affected Italy, Spain, Portugal and Ireland), risking a break-up of the eurozone. The European Union and the International Monetary Fund joined the rescue of the Greek economy. As a condition of financial aid, Athens was required to carry out reforms and comply with the austerity regime, which repeatedly led to protests among the population.

In 2023, Greece's credit rating returned to investment grade for the first time in years, but problems in the country's economy still remain, notes Reuters. Among them are falling birth rates, labour shortages, and natural disasters - forest fires and floods - that are hitting public finances. In addition, Greece's economic growth is being held back by stagnation in leading eurozone countries, which once imposed strict reforms on Athens, the agency points out.