On 23 January 2024 the IMF issued a report following discussions with Greece under Article IV of the IMF’s articles of agreement.

Greece’s economic outlook has improved with real GDP growth projected at 2.3% in 2023 and 2.1% in 2024. Positive real wage growth will support continuing levels of private consumption, and investment is expected to continue expanding. Risks to economic growth come from a potential escalation of geopolitical issues which could disrupt trade and lead to renewed energy and food price pressures. There are upside risks from an acceleration of structural reforms or from stronger-than-expected investment.

Growth-friendly fiscal consolidation can further strengthen public debt sustainability and support inclusive and green economic growth. The report notes that fiscal policy should emphasize public investment, including green investment, and critical social spending such as healthcare and education. Further fiscal structural reforms such as the continuing efforts to address tax evasion could improve the efficiency of fiscal policy.

The IMF considers that continued reforms in digitalizing public administration and removing barriers to competition could lead to higher private investment and improve productivity. Higher labour participation and a more skilled workforce would boost the labour market and further facilitate digitalization.

The report notes that efforts are needed to achieve Finland’s ambitious climate targets and facilitate the green transition. Implementation of the policy framework for renewables, including measures to streamline the licensing framework for new investment, would accelerate progress and increase energy security. The IMF recommends that the government should consider raising the carbon pricing in sectors not subject to the emissions trading scheme (ETS) such as transport. This could include the use of excise taxes and feebates (the use of fees and rebates to improve allocation of the costs of negative externalities).