Greece Faces Slower Growth, Higher Inflation, Watchdog Says

Greece’s independent fiscal watchdog has cut its growth forecast for 2026 and sharply raised its inflation outlook, warning that the economy is losing momentum just as price pressures build again.

The Hellenic Fiscal Council, an independent body that monitors the government’s budget performance, now expects the economy to expand by 1.9% this year. That is down from an earlier projection of 2.3%. In its Spring Report 2026, the council also raised its inflation forecast to 3.2%, well above the 2.2% written into the state budget passed only months earlier.

The mix is an awkward one. It signals slower expansion and a heavier cost of living for households at the same time. Even with the state continuing to beat its budget targets, the council delivered a clear warning about the real economy.