Marshall Stocker, co-head of emerging markets at Morgan Stanley, has proclaimed Greece as the most promising investment option within emerging markets. Speaking on CNBC’s Squawk Box, Stocker attributed this favorable shift to “the improvement in the economic institutions that the country has done under this current government.”
Stocker highlighted the Greek government’s commendable efforts in enhancing the rule of law, which subsequently facilitated the stabilization of banks’ balance sheets. He commended the implementation of corporate tax reductions and emphasized that Greece currently stands as “the second fastest growing economy in Europe.” Stocker also envisioned the potential for Greece to attain a green credit investment rating by year-end.
Turning his attention to the Greek stock markets, Stocker emphasized their robust performance, boasting a fifty percent return in recent years. Remarkably, he underscored that the market boasts a price-to-earnings ratio of 7.5 with an impressive nearly four percent dividend yield. Stocker underlined the correlation between the enhancement of economic institutions and the upward trajectory of various stocks, regardless of their nature.
Earlier reports from the Bank of Greece had forecasted a 2.2 percent growth rate for the Greek economy in 2023, while projecting a decrease in inflation to 4.4 percent. Yannis Stournaras, Governor of the central bank, acknowledged the commendable progress of the Greek economy in 2022, achieving nearly six percent growth and surpassing pre-pandemic levels. Stournaras highlighted record-breaking foreign investment inflows over the past two years, alongside a reduction in unemployment below 2010 levels.
Conversely, the European Commission’s economic projections remained more conservative, estimating a 1.2 percent growth rate for Greece in 2023. Despite this, the Recovery and Resilience Fund (RRF) and government initiatives played a pivotal role in mitigating the effects of energy price fluctuations on businesses and households.
Earlier this year, US Ambassador George Tsunis confirmed an increased influx of US investments in Greece for 2023, reflecting the strengthening bonds between the two nations. Tsunis celebrated the collaborative efforts of the government, American-Hellenic Chamber of Commerce, and the business community. Notable American corporations, including Amazon Web Services, Microsoft, JP Morgan, and Meta, have significantly contributed to Greece’s investment landscape.
Tsunis emphasized the burgeoning Foreign Direct Investment landscape and hailed Greece’s untapped potential and skilled workforce. These investments span diverse sectors such as technology, 5G optic fibers, energy, tourism, and shipping. Furthermore, Tsunis underscored the pivotal role of Greece in diversifying supply sources, reinforcing the alignment of interests and values between the US and Greece.
