OECD: Disposable income will boost consumption
Greece’s economy is strong and is projected to grow at a rate of 2.3% in 2024, 2.2% in 2025 and 2.5% in 2026, according to the biannual OECD Economic Outlook report released by the Organization for Economic Cooperation and Development on Wednesday.
“Rising disposable income will strengthen consumption, as a tight labor market and minimum wage increases support wages,” according to the report.
The OECD notes that real household income per person is rising and is higher at present than before the pandemic, as well as being higher than expected based on pre-pandemic trends.
The fact that Greece – together with Portugal and Spain – is one of the few OECD member-states with upward revisions of potential per capita growth “also indicates that structural reforms are yielding benefits over the course of time, as these countries are among those that carried out the most reforms in the two previous decades,” the report noted.
Employment growth is projected to ease progressively amid rising labor costs, the report said.
It noted that nominal wages have increased by 8.6% in the second quarter of 2024 on an annual basis, while labor shortages are historically high.
Inflation is expected to reach 2% in late 2026 amid persistently high service costs and core inflation.
Kathimerini
