“With Grexit averted, guess whose debt is outperforming?” is the title of an extensive publication by the <a href="https://www.archyde.com/global-economy-would-grow-at-an-annual-3-2-next-decade-graph/” title=”Global economy would grow at an annual 3.2% next decade: Graph”>Bloomberg news agency regarding the more positive than expected economic performance of Greece.
Mitsotakis: Soon more good news about the economy
“Greece’s economic recovery is confirmed by its low cost of borrowing, which is lower than the average of investment-grade states worldwide,” the agency notes.
“Do you remember Greece?” notes the publication. Despite the wider assessments of the British press in 2015 and even former FED chief Alan Greenspan that “it was only a matter of time” before Greece left the monetary union and the euro collapsed.
However, Grexit never happened as this was the will of the bond market, the publication notes, quoting the history of yield fluctuations recorded by the ten-year Greek bond until its final recovery during the days of the current government.
The state of 10.3 million, contrary to every assessment by an international house, has been an investment-grade economy since December 2021, riding on positive trends in inflation, per capita income, rising GDP, non-performing loans and political stability, according to data collected by Bloomberg.
In the bond market, Greece (the Greek bond) trades at least three notches above what the investing public considers high risk and high yield. It should not return to investment grade anytime soon.
Since the Mitsotakis government took office in 2019 GDP per capita has increased by 7%, outpacing major economies including Germany (1%), France (1%), Italy (2%), Spain (-2%) , the U.K. (1%) and the U.S. (4%) according to data compiled by Bloomberg.
Non-performing loans, as a percentage of total loans, – a measure of the health of the banking system – fell to 6.8% from 47% in 2017 and8 were at their lowest point since 2017, it is noted in the publication, which is also detailed evidence of the recovered soundness of the banking system.
As added in the same publication, the political risk in Greece is at the lowest level, at least since the era before the financial crisis.
#Credit #Bloomberg #performance #Greek #economy
**Interview with Economist Dr. Maria Konstantinou on Greece’s Economic Recovery**
**Editor:** Welcome, Dr. Konstantinou! Thank you for joining us today. Bloomberg recently published an article titled, ”With Grexit Averted, Guess Whose Debt is Outperforming?” Can you give us an overview of what’s driving Greece’s economic recovery?
**Dr. Konstantinou:** Thank you for having me. Indeed, the article highlights a significant shift in Greece’s economic landscape. Several factors are contributing to this recovery, including effective government reforms, improving investor confidence, and a gradual return of tourism, which is a vital sector for Greece. Low borrowing costs are also a key indicator, suggesting that Greece is becoming attractive to both local and foreign investors.
**Editor:** Prime Minister Kyriakos Mitsotakis mentioned we can expect more positive news about the economy soon. What insights can you share about future developments?
**Dr. Konstantinou:** Mitsotakis is optimistic, and rightly so. The government’s policies aimed at digital transformation and modernization of public services are set to bear fruit. Moreover, Greece is positioning itself to attract foreign direct investment, especially in sectors like renewable energy. We may see more job creation and a further decline in unemployment rates in the near future.
**Editor:** Bloomberg noted that Greece’s borrowing costs are now lower than the average of investment-grade countries. What does this mean for Greece’s fiscal health moving forward?
**Dr. Konstantinou:** Lower borrowing costs are indicative of market trust and fiscal stability. This allows Greece to finance its debts more sustainably and allocate resources toward growth initiatives rather than high-interest repayments. It’s essential, however, for the government to maintain a prudent fiscal approach to ensure these trends continue.
**Editor:** Lastly, what lessons can other countries facing similar economic challenges learn from Greece’s recovery?
**Dr. Konstantinou:** Greece’s experience teaches that resilience and reform are crucial. Political stability, transparent governance, and fostering a conducive environment for investment can lead to significant improvements. Countries in distress should focus on comprehensive reforms and engage with international partners to secure necessary support.
**Editor:** Thank you, Dr. Konstantinou, for sharing your insights on Greece’s hopeful economic recovery. We look forward to seeing how the situation evolves.
**Dr. Konstantinou:** My pleasure! Let’s hope for more good news in the coming months.
