Prime Minister Stephen Harper expressed confidence in Greece's troubled economy during a visit to forge stronger economic ties with the debt-riddled country.

But the prime minister also brought a message of austerity to the country, which was again wracked by anti-government protests.

"We have every confidence that our Greek hosts here and our European friends will continue to deal with the matters so the global economy can continue to grow," Harper told reporters during the visit.

Harper made his comments after meeting with Greek Prime Minister George Papandreou during his first official visit to the country.

Greece is currently suffering through a serious financial crisis, highlighted by protests and political turmoil over its debt crisis and the austerity measures required to get the deficit under control.

Harper met with Papandreou on Saturday, during which the two men discussed Greece's financial crisis and potential investments in its mining and energy industries.

Harper said he was interested in finding ways to increase business between Greece and Canada. The two countries currently do about $2 billion worth of trade each year.

"We want to talk about what the opportunities and barriers may be to that," he said.

CTV News' Daniele Hamamdjian said from Athens that Harper assured Papandreou that he had full confidence that Greece would recover -- a move designed to calm jittery markets, on edge after Papandreou's government failed to reach an agreement on proposed austerity measures.

Greece has been surviving on a $155 billion loan from the European Union and International Monetary Fund for the past year.

Papandreou had tried to pass a series of cutbacks that would save $33 billion through 2015. Papandreou's failure to rally government support to the new measures threw future bailouts into doubt.

Relying on his own political history, Harper cautioned Papandreou that governments must sometimes act without consent from opposition -- when it is in the best interest of the country.

"I know from experience that it is not unusual for opposition parties to refuse to co-operate with government," Harper said on Saturday.

"But governments have a responsibility to act and I certainly honour the determination of Prime Minister Papandreou and the very difficult actions he's had to take in response to problems his government did not create."

Harper is in Greece on a two-day visit after attending the G8 summit in France. He was joined by Treasury Board President Tony Clement, who agreed to youth mobility measures as part of the visit.

The agreement would make it easier for Canadian and Greek youth to travel to and work in the other country, an arrangement Canada has with 32 other counties.

"Our Government values the excellent relationship it shares with Greece and is proud to further strengthen the ties between our two countries," Harper said in a statement.

"Today's agreement will empower youth to broaden their horizons and develop a better understanding of each other's cultures. Their experiences abroad will enhance their personal and professional development, giving them a competitive edge in the job market."

There are currently about 250,000 Canadians with Greek heritage -- including Clement and newly-elected MP Costas Menegakis.

Harper said that while close ties between Canada and Greece prompted the trip, he has always been personally drawn to the country.

"I have always been fascinated by your country as a cradle of democracy and this was one of the first places in the world I visited, in fact, 34 years ago as a young man," Harper told Philippos Petsalnikos, the speaker of the Hellenic parliament.

"And notwithstanding the challenges that we read about, I have observed the remarkable progress the country has made over the past several decades."

On Sunday, Harper will visit the town of Kalavryta, the site of a mass execution by German forces in World War II. The grandfather of Harper's director of communications, Dimitri Soudas, was one of 1,200 people to lose their lives at the site.