THE Hellas is on the verge of recovery investment grademore than 12 years after it lost that key credit rating, marking the recovery of an economy rocked during the eurozone debt crisis, an analysis by Goldman Sachs.

“Greece is an extraordinary economic story,” says Filippo Tadei, Goldman Sachs’ chief economist for Southern Europe. “We see an economy that is growing almost 3% above the forecast growth rate in the Eurozone. Looking further ahead, in 2024 we see this gap narrowing to just under 2%, but it is still an economy that is growing much faster than its competitors. In addition, Greece is seeing inflation fall faster (than other countries in the eurozone). Therefore, in general, it is a very positive image for Greece”, explains Mr. Tadei.

The economist points out that the recovery of the Greek economy came slowly and gradually, recalling that it lost more than 1/3 of its GDP until 2013, but then slowly began to recover. He does not fail to remind that the Covid-19 pandemic affected the economies of most countries, and the same happened in Greece.

“What is interesting – and perhaps surprising – is what followed after the pandemic. From 2021, but especially from 2022 onwards, the level of economic activity in Greece was particularly strong”, he emphasizes, and singles out investments and tourism that gave a big boost.

Filippo Tadei reports that the result of the elections will be important for finalizing the implementation of the Recovery and Resilience Fund, adding that the implementation of the commitments “will probably be the final step for Greek government bonds to regain investment grade”.

Asked why the recovery of investment grade is so important for Greece, the Goldman Sachs economist explains that when a country does not have such an assessment it is not among the options for many institutional investors. “So if Greece takes another step forward, then long-term investors, such as large pension funds and insurers, among other investors, will likely start investing in Greek securities for the first time in a long time. This change will help provide cheaper and stable financing for the country’s future investment needs,” concludes Mr. Tadei.