According to Goldman Sachs, Greece is poised to take “the final step” towards achieving investment grade status.
The Greek economy is surpassing growth expectations and experiencing lower inflation compared to the Eurozone, setting the stage for national elections on May 21.
While opinion polls indicate a clear lead for New Democracy and Prime Minister Mitsotakis, it is unlikely that they will secure a parliamentary majority, as reported by Proto Thema. This means that either a coalition government will be formed between New Democracy and PASOK, or new elections will be called for in early July, utilizing the new electoral system that grants bonus seats to the largest parties.
Goldman Sachs suggests that New Democracy may be motivated to push for the July vote to secure a one-party majority or gain more influence in the new governing coalition. The outcome of the elections will play a crucial role in expediting the implementation of the Recovery and Resilience Facility (RRF) and ensuring long-term growth through capital accumulation.
The successful execution of the RRF, which promotes and facilitates the structural transformation of the Greek economy, is expected to be the decisive factor in helping Greek government bonds regain an investment-grade rating. This achievement would signal a significant milestone for Greece’s economic recovery and attractiveness to investors.
