Welcome to the Extreme Investor Network, where we provide you with unique insights and analysis on the latest trends in the stock market, trading, and financial world. Today, we are diving into the recent above-trend growth for Greece and what it means for investors.
Greece’s growth has been fueled by strong tourism proceeds, robust private consumption, and better investment due to strengthened investor confidence. Our average growth estimate of 1.4% from 2026 to 2029 is optimistic, assuming no meaningful crisis and no annual recession over that horizon.
The European Commission recently disbursed the fourth payment of EUR 998.6m in grants from Greece’s Recovery and Resilience Plan, showcasing progress on reforms and investments. However, despite higher investment levels post-pandemic, Greece still lags behind the euro-area average.
Improving the banking system resilience and reducing non-performing loans (NPLs) are priorities for Greece. Greek banks have made progress in reducing NPLs, although there is still work to be done to align with the EU average. The Hellenic Financial Stability Fund has been actively selling off its holdings in banks, reducing the sovereign-bank nexus.
Challenges remain for Greece’s credit rating, with an elevated government debt ratio posing a risk. As Greece finances itself in markets and repays bailout loans early, the structure of its debt is weakening. Net interest payments are projected to increase, adding pressure on the government’s finances.
Stay tuned for Scope Ratings’ upcoming publication on Greece’s sovereign rating, scheduled for December 6. For a comprehensive look at today’s economic events, be sure to check out our economic calendar.
For more expert insights and analysis on the stock market, trading, and financial world, keep it locked to Extreme Investor Network. Dennis Shen, Senior Director in Sovereign and Public Sector ratings at Scope Ratings GmbH, and Keith Mullin, senior writer at Scope, contributed to this commentary.