The Greek government is awaiting with particular interest the release of second-quarter GDP figures on September 5, just a day before the Prime Minister is due to address the Thessaloniki International Fair, the country's most prominent political and economic showcase.
The timing could prove decisive: if the data confirm that the economy is maintaining enough momentum to reach this year's growth target of 2.3 percent, the figures are expected to be used as political capital to reinforce the government's message of stability and steady progress.
Positive results would provide an opening to present upcoming measures — from tax reforms and housing initiatives to support for pensioners — in a more convincing light. The government's aim is to argue that growth is not confined to statistics but can be felt in everyday life through lighter burdens and greater financial relief. Should the numbers disappoint, however, the government will face the more difficult task of balancing the challenges of the real economy with the need to maintain an optimistic narrative in Thessaloniki.
In the first quarter of 2025, GDP grew by 2.2 percent year-on-year but showed no change compared to the previous quarter. Investment figures have also raised concern, falling 3.2 percent annually and 6.1 percent quarter-on-quarter. Against this backdrop, the government is expected to focus its Thessaloniki announcements on easing pressure on the middle class, which traditionally shoulders the heaviest tax load. Plans under discussion include the creation of a new intermediate tax bracket for lower incomes, raising the threshold for the top tax rate of 44 percent, and introducing fresh deductions for families with children.
At the same time, cuts to taxation on rental income are being prepared, with the aim of encouraging property owners to bring unused housing back onto the market. Pensioners are also likely to see new support measures, as the government considers both expanding the pool of beneficiaries for a €250 allowance and increasing the amount itself.
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