AXIA Ventures: 13% GDP growth in two years – All growth catalysts in place

The growth dynamics of Greece are expected to continue in the coming years, exceeding the EU average growth, estimates AXIA Ventures Group, in its report on the prospects of the Greek economy.

The report emphasizes that so far, the converging estimates of international organizations and economists are that the Greek economy is going to grow cumulatively by at least 13% in 2021 and 2022, easily overcoming the pandemic-induced decline in GDP by 9% in 2020 .

They also stress that all the necessary catalysts for boosting the economy are now in place: reforms, budget support, increased liquidity plus a society and business culture that is now open to change. These catalysts can not be substantially modified by the broader market conditions.

Low political risk

Analysts emphasize the low political risk in Greece.

“The rapidly improving outlook of the country is already pushing investments to levels never seen before in Greece, leading values ​​higher. “The messages we receive from the market point to the continuation of this trend,” they say.

Stock exchange

The report also states that record activity in the real economy is not fully reflected in the stock market.

The authors give a vote of confidence in the Greek banking sector, “as it offers an attractive entry point into improved economic activity.” They propose a Market Assessment for all banks with target prices of 1.80 EUR / sh for Alpha Bank, 1.50 EUR / sh for Eurobank, 6.00 EUR / sh for NBG and 2.15 EUR / sh for Piraeus Bank.

In the non-financial sector, AXIA is reviewing a number of stocks that present very exciting investment opportunities and under the positive macroeconomic context should be able to perform strongly. “The top choices and the best proposals”, according to the report, for 2022 is Mytilineos (Buy with TP 23.10 EUR / sh) that records the trends of the green transition while it is in the right part of the cycle for its basic activity and Terna Energy (Purchase with TP 19.10 EUR / sh).