greek economy

Well-known US hedge fund manager John Paulson speaks to the Sunday edition of “To Vima” and details his optimism over the course of the Greek economy

In two in-depth pieces on the Greek economy and the successful early repayment of its debt, the German-based weekly newspaper Ziet and RND (RedaktionsNetzwerk Deutschland) highlight why and how the small Mediterranean country achieved this impressive feat. Entitled “The Economic Situation of Greece: What No One Expected,” the long piece in the weekly newspaper Zeit, […]

Greece continues to outpace the EU average in terms of growth rates, despite signs of a slump. The outlook for 2024 and 2025, however, indicates a diminishing expansion in the face of rising national debt.

The baseline scenario assumes that primary budget surpluses will be maintained in the coming years, supporting Greece’s credit rating trajectory.

“These are sectors where Europe as a whole struggles, but Greece is performing better,” he said.

The numerous laissez-faire liberals in the government must be feeling somewhat uncomfortable with the government's continual interference in various markets

Therefore, there is need for policy interventions in order to boost demand, stabilize the labor market and support industrial production.

By 2026, the reduction in public debt is expected to bring it close to 140% of GDP.

The investment bank notes that Greece is showing the strongest GDP growth in the Eurozone. Additionally, efforts to clear up bank balance sheets are anticipated to yield increased capital returns.

Meanwhile, Greece has announced an early repayment of the Greek Loan Facility, aiming to reduce public debt by the end of the year.

Fitch is expected to release its evaluation of the Greek economy on Nov. 22, with a possible scenario being an upgrade of the economy from “stable” to “positive”

The Minister of National economy and Finance, Kostis Hatzidakis, highlighted that the IRIS system is a priority, stating that 3.3 million IBANs are already connected with IRIS.

Once at risk of default, Greece has made notable progress in debt reduction over the past few years

Major issues that are expected to intensify if not addressed, include the high current account deficit, the substantial investment gap, low productivity, and the question of long-term growth.

Additionally, a 300 million euro Guarantee Fund will be created with the European Investment Bank, leading to 1.5 billion euros in leverage

Moody’s took a “stricter” stance compared to the other agencies when in Sept. of 2023 it refused to grant Greece the investment grade.

Last April’s positive outlook issued by the agency lays the groundwork for another potential upgrade.

GDP at constant prices reached €196.984 billion in 2023, up from €192.495 billion in 2022, ELSTAT said

The economic climate index stood at 110.2 points in September, compared to 106.1 points the previous month and 106.8 points a year ago, according to IOBE.

Under Fitch’s baseline scenario, it projects that the public debt-to-GDP ratio will decrease by more than 50 percentage points by 2026