
Influential Greek central banker Yannis Stournaras said a restoration of an investment grade rating for the country is a major challenge, while sticking to his prediction that such an upgrade will occur this year.
Speaking during an interview with Econostream, the Bank of Greece (BoG) governor noted that the re-elected Mitsotakis government appears determined to proceed with the necessary economic reforms.
One benefit of a regained investment grade, as he said, will be a partial mitigation of the negative impact on Greek businesses and households from successive interest rates taken by the ECB.
He explained that “…only 10 percent of funds can invest in a territory without an investment tier. Consequently, there is a lot of room for new foreign direct investment or financial investment once the country achieves investment grade. Many more funds will be willing to invest in the Greek economy”.
Referring to the latter, he said it was entering a phase of higher growth compared to the European average, while at the same time, Greece’s public debt to GDP ratio is dropping.
Returning to interest rates, he forecast that another hike will not come in September, saying “there are signs that the economy is weakening. The ECB’s baseline macroeconomic scenario predicts positive growth, but it appears that this may not be the case.”
However, in response to an interest rate hike this month, July, he said “we rely on the data, we have to look very carefully at the data in July, especially the weakening of economic activity”, while at another point of his interview he adds “Given that it now appears that the data points to a weaker economy than our baseline forecast, yes, we have to be very, very cautious, even in July.”


Latest News

EU Condemns Trump Tariffs, Prepares to Retaliate
As tensions escalate, the EU is expected to continue negotiations with Washington while preparing for potential economic retaliation.

The Likely Impact of Trump Tariffs on Europe and Greece
Trump tariffs are expected to negatively affect economic growth in the Eurozone while Greece's exports could take a hit.

Motor Oil Results for 2024: Adjusted EBITDA of 995 mln€; Proposed Dividend of 1.4€ Per Share
Adjusted EBITDA for 2024 was down 33% yoy. The adjusted profit after tax for 2024 stood at 504 million euros, a 43% decrease from the previous year

Cost of Living: Why Greece’s 3% Inflation Is Raising Alarm
Greece appears to be in a more difficult position when it comes to price hikes, just as we enter the era of Trump’s tariffs.

Fitch Ratings Upgrades the Four Greek Systemic Banks
NBG’s upgrade reflects the bank’s ongoing improvements in its credit profile, Fitch notes in its report, including strong profitability, a reduction in non-performing exposures (NPEs), and lower credit losses

Trump to Announce Sweeping New Tariffs Wednesday, Global Retaliation Expected
With Trump's announcement just hours away, markets, businesses, and foreign governments are bracing for the fallout of one of the most aggressive shifts in U.S. trade policy in decades.

Inflation in Greece at 3.1% in March, Eurostat Reports
Average inflation in the eurozone settled at 2.2%, compared to 2.3% in February

Greece’s Unemployment Rate Drops to 8.6% in February
Despite the overall decline, unemployment remains higher among women and young people.

Jerry Kalogiratos Highlights Key Role of Energy Transition and Data Demand in LNG Outlook
Energy transition and the prospects of LNG were discussed at Capital Link’s 19th Annual International Maritime Forum, during a panel discussion with Jerry Kalogiratos (Capital Clean Energy Carriers Corp.)

Santorini Safe and Ready for a Dynamic Tourism Season
Authenticity, cultural heritage, and genuine experiences at the center of Santorini's new promotional campaign