Morgan Stanley analysts are now among those who praise Greece’s performance on the debt front, since they estimate that in two years, i.e. 2025, the debt-to-GDP ratio will drop below 150%. In fact, the reduction will exceed 20 percentage points, from the 171.3% that was at the end of 2022.
As reported by Morgan Stanley, the growth rate of the Greek economy will remain above 2% in the next two years, i.e. above the performance of the rest of the Eurozone countries, with significant assistance from the funds of the Recovery Fund.
In particular, it estimates that Greece’s growth rate will be 2.3% and 2.4% respectively in 2024 and 2025.
Consumption and investment
According to Morgan Stanley, both consumption and investments will support the growth rates of the Greek economy.
Already, the Greek government has announced an increase in the minimum wage, which will fuel consumption, despite the fact that inflationary pressures will remain. Given the gradual de-escalation of consumer price pressures, the trend is expected to be upward in consumption, Morgan Stanley points out.
At the same time, the recent upgrades of the Greek economy to investment grade status will improve the cost of borrowing for domestic businesses, while also strengthening the flow of investments.