Greek Economy Set to Outperform Much of Europe

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Greece is expected to continue outperforming much of Europe, with DBRS forecasting economic growth of 1.8% in both 2026 and 2027.

The credit rating agency included Greece among the European economies expected to record stronger growth, alongside the Iberian Peninsula, parts of Central and Eastern Europe and several Scandinavian countries.

“France, Germany, Italy and the United Kingdom are expected to grow at a slow pace of 0.5-1% in 2026, with growth expected to increase only slightly to 0.7-1.2% in 2027,” DBRS said in its updated forecasts.

“However, the Iberian Peninsula continues to outperform, along with Greece, parts of Central and Eastern Europe and some Scandinavian countries,” the agency added.

For Greece, DBRS forecasts GDP growth of 1.8% in 2026 and 1.8% in 2027.

Greek unemployment expected to fall

Despite uncertainty caused by geopolitical risks and elevated oil prices, DBRS said labour market conditions remain relatively strong.

The agency expects unemployment rates to remain stable or gradually decline across most major advanced economies and China.

For Greece, DBRS forecasts an unemployment rate of 8.3% in 2026, falling to 7.8% in 2027.

DBRS said forecast revisions were mixed during the third quarter of 2026.

Global energy prices declined for much of the quarter before rising sharply again in September, as Houthi attacks further undermined confidence in the availability of oil supplies from the Middle East.

“However, long-term interest rates continue to rise,” DBRS said, adding that central bank policy rates are providing less support to economic activity.

Inflation also remains above central bank targets in many countries, while unemployment remains at historically moderate or low levels, according to the agency.

Technology investment supports global growth

The United States remains an exception among major advanced economies in terms of growth, while India and China stand out among emerging markets.

DBRS said global economic and financial conditions largely reflect what it describes as a “technology arms race”, driven by strong demand for investment in technology, particularly artificial intelligence.

The agency also pointed to growing investment in supporting energy infrastructure, as well as the aerospace and defence industries.

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