The International Monetary Fund Executive Board completed its Article IV consultation with Greece, concluding that the country met the energy price shock from the war in the Middle East with stronger fiscal sustainability and financial stability, but now faces slower growth, elevated inflation and mainly downside risks. The IMF projects real GDP growth of 1.8 percent in 2026 and 1.5 percent over the medium term, and said the policy mix should preserve macro-financial stability while supporting balanced and sustainable growth. Directors pointed to Greece’s strong fiscal performance, supported by tax evasion reforms, as helping reduce public debt and creating room for temporary household support measures. They recommended maintaining primary surpluses, using available European Union funds to sustain public investment, and keeping energy support well targeted and temporary. The 2026 Financial Sector Assessment Program, the first since 2006, found systemic financial risks were low before the war and remain manageable, with banks resilient under stress tests, though the IMF called for closer monitoring of common exposures to large firms, faster resolution of distressed debt outside the banking system, stronger supervision of credit servicers, improved crisis preparedness and financial safety nets, and better quality bank capital. Directors also urged further structural reforms to raise productivity and labor force participation, reduce regulatory burdens, improve workforce skills, address housing affordability by mobilizing existing supply, and help narrow the persistent current account deficit, alongside completion of the European Union single market.
International Monetary Fund2026-05-27
International Monetary Fund concludes Greece Article IV consultation and says fiscal discipline and structural reforms are needed as 2026 growth slows to 1.8 percent
The IMF Executive Board’s Article IV consultation with Greece found stronger fiscal sustainability and financial stability but slower growth, elevated inflation and mainly downside risks, with real GDP growth projected at 1.8 percent in 2026 and 1.5 percent over the medium term. Directors highlighted strong fiscal performance and urged maintaining primary surpluses, using EU funds for public investment, and keeping energy support targeted and temporary. The 2026 Financial Sector Assessment Program found low but manageable systemic risks and called for stronger oversight of credit servicers, crisis preparedness and bank capital quality, while the Board also pressed for structural reforms to boost productivity and labor participation, cut regulatory burdens, improve skills, address housing affordability and narrow the current account deficit.