Today Greece is one of the most quickly growing economies in the European Union. The economy is growing two times as fast as the average in the Eurozone.
Tourists are flowing into Greece, requiring new construction. Multinational companies like Pfizer and Microsoft are investing in Greece, and private investors are investing in the Greek market.
Greece’s Investment Grade Rating
In early September, DBRS Morningstar, a major credit rating agency, raised Greece’s credit rating to investment grade, a move that will allow big investors to buy government bonds.
Moody’s, another large rating agency, also raised Greece’s debt rating by 2 levels on September 15th, which is a step in the right direction for Greece’s economy.
Tourism in Greece
This summer, over 10 million tourists came to Greece. The revenues from tourists this year were over 20 billion euros. Construction is particularly strong because of the increased demand for hotels. Airbnb short-term rentals and the Golden Visa program continue to draw foreign investment.
Investment in Greece
Microsoft is investing in a €1 billion data center east of Athens. To the north of Athens, Pfizer is opening a €650 million research center. Other European and International companies like Cisco, Meta, and JPMorgan are hoping to invest in Greece as well in the next few years.
Greece’s Prime Minister is Confident
The current Greek Prime Minister, Kyriakos Mitsotakis, is known for being a business-friendly politician. He was re-elected in June partly because of his smart economic policies. The government made it easier for businesses to operate and increased the minimum wage. Greece also paid some of its international bailout amount ahead of the expected schedule. Mr Mitsotakis praised Greece’s return to investor dignity.
He stated publicly that Greece will not stop growing just because it has an investment-grade rating. “We’re not hiding behind investment grade, saying, ‘We’ve achieved an important goal — let’s turn to autopilot.’”
Greece Repays its Loans Early
In other news, Greece plans to repay its 5.3 billion euro loan early. These loans were given to Greece during the first rescue package, and are due to be paid in 2024 and 2025. However, they will be paid on December 15th of 2023. According to the Ministry of National Economy and Finance, Greece plans to make another early repayment in 2024.
