Updated
Updated · Kathimerini English Edition · Sep 19
JPMorgan Says Greece's Recovery Matures as GDP Growth Slows to 1.4%
Updated
Updated · Kathimerini English Edition · Sep 19

JPMorgan Says Greece's Recovery Matures as GDP Growth Slows to 1.4%

2 articles · Updated · Kathimerini English Edition · Sep 19

Summary

  • JPMorgan said Greece’s recovery has become more credible and resilient, but warned the next phase of growth is not assured as the economy shifts away from post-crisis catch-up drivers.
  • 8% unemployment, down from 28%, and a fiscal surplus underpin that view, alongside investment-grade status and a government target to reach an A rating by 2030.
  • 146% gross debt remains high, but JPMorgan said long maturities, mostly fixed rates and early repayments should keep refinancing risks contained, with the ratio seen falling to 134% by 2027.
  • 16.9% investment-to-GDP in 2025, up from 11.3% in 2018, shows investment is broadening growth, though convergence with the EU is still incomplete.
  • 1.4% medium-term growth would mark a slowdown as EU recovery funding winds down and demographics bite, leaving productivity gains, private investment and a larger tradable sector as the key test.

Insights

With AI tax audits fueling budget surpluses, can Greece truly achieve long-term prosperity before its crucial EU recovery funds dry up?
As Greek equities regain developed market status, why are everyday workers still struggling to feel the benefits of this macroeconomic miracle?