FAZ: Greece is turning into a harbor of stability

Consumers in Greece may have had a “difficult holiday season” with inflation climbing to 8.5 percent, notes the Frankfurter Allgemeine Zeitung in an article today, but the country is experiencing a period of “strong economic growth, possibly from 5 to 6 percent last year.”

Therefore Greece received an “early Christmas present” from Great Britain: “The Economist” magazine voted Greece as the best performing economy among the 34 OECD countries. The criteria were economic growth, inflation, national debt and stock prices. “The country continued to repay its debts, and not only experienced a booming tourism season, but also a boom in exports and foreign direct investment for much of the year,” the Frankfurt paper reported.

“Impressive prospects”

In this context, the prospects for 2023 are impressive, FAZ concludes: Although growth will slow down significantly, according to the European Commission it will still be significantly above the EU average. Like the Greek government, the IMF expects growth of 1.8 percent. “The return to a primary fiscal surplus this year is considered likely. Therefore, the government and investors are also hoping that the rating agencies will upgrade the government bonds, which will attract new investors.” According to FAZ, the upgrade is a matter of time.

But the Athens Stock Exchange also managed to shed its “pariah” reputation, with the Athex Composite index rising – unlike many other markets – by 4 percent. Thus the 120 most important companies outside the banking sector recorded an annual increase in net profits of more than two thirds. “Analysts estimate that the net profitability of listed companies for 2022 will surpass the record set in 2007. The year before the debt crisis. “For many investors, this is now just a distant memory,” the paper concludes.