- Budget Beat – Greece outperformed its fiscal targets last year with a better-than-expected general government primary surplus equal to 1.9% of GDP, versus a target of 1.1%. According to data released by Eurostat, Greece’s public debt-to-GDP ratio last year fell by 11 percentage points to 161.9% of GDP – also surpassing expectations – from 172.7% in 2022. For this year, the debt ratio is projected to fall further to 152.7% of GDP.
- Bond Issue – Greece successfully auctioned its first 30-year bond since 2021 and since regaining investment grade status last year, raising €3 billion amid strong institutional demand. The bond was more than 11 times oversubscribed and priced to yield 4.24%, some 20 basis points below respective yields in neighboring Eurozone countries. Almost two-thirds of the issue was absorbed by asset managers and insurance/pension funds, and another 22% by banks.
- Greek Bank – International credit ratings agency DBRS Morningstar has assigned a Long-Term Issuer Rating of BBB (low) to National Bank of Greece, making it the first Greek lender to regain investment grade status in 15 years. The rating is equal to the rating DBRS has assigned to Greek sovereign issues.
- GDP Outlook – Greece’s economy is forecast to grow 2.2% this year and 2.3% in 2025, according to the latest European Commission forecast, well above the growth outlook for the European Union overall. The Commission sees EU-wide growth of 1.0% this year, and 1.6% next year.The Greek government’s revised forecast is for 2.5% growth in 2024 and 2.6% in 2025.
- Top Pick – Greece is one of the Top 5 destinations for travelers from Germany, the UK and France – Europe’s three largest tourism source markets – over the next 12 months, according to a survey by the Institute of the Greek Tourism Confederation (INSETE). A separate survey by the European Travel Commission, the association of national tourism organizations, also names Greece as one of the Top 5 intra-European destinations this year for European travelers.
- Tourism Outlook – Greece is set to welcome almost 40 million tourists by 2028, according to a report by Fitch Solutions, with growth driven by increasing visitors from China and India. For this year, the company sees tourist arrivals rising 5.3% to 34.5 million visitors, up from last year’s record 32.7 million arrivals.
- Judicial Reform – Parliament approved measures to streamline Greece’s judiciary by unifying its lower courts, a move that aims to speed up court decisions. According to the Justice Ministry, the waiting time for court decisions will be reduced 30% following the reforms, and 1,000 more judges will be made available to hear cases brought before Courts of First Instance.