Berenberg praises EU’s fastest-growing economy
Berenberg Bank commented on Greek bonds last week, pointing out that the declining spreads with major sovereign bonds in the eurozone reflect Greece’s strong growth story.
With the sweeping reforms introduced by the government and Prime Minister Kyriakos Mitsotakis since 2019, Greece has become the fastest-growing economy within the eurozone, argued the private banking company.
“Political risks have largely been zeroed out, the fiscal deficit is under tight control (just 1.6% of GDP in 2023) and public debt has fallen from 207% of GDP in 2020 to 162% in 2023,” it noted.
This is supported by the fact that Greece pays low interest rates on most of its debt held by official creditors, so the Greek bond spread is at just 93 bp.
