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Greece Tops Morgan Stanley’s Emerging Markets Fund

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By the end of the year, Greece may receive a green credit investment rating. Credit: Giuseppe Milo. CC BY-SA 2.0

Greece has become the best choice for investment in emerging markets, said Marshall Stocker, co-head of emerging markets at Morgan Stanley.

As Stocker stated on CNBC’s Squawk Box, this was due to “the improvement in the economic institutions that the country has done under this current government.”

According to him, the Greek government has improved the rule of law, which, in turn, has helped banks “clean up their balance sheets.” Stocker also noted the corporate tax cuts and added that the country “is the second fastest growing economy in Europe.”

Stocker has also outlined the possibility that Greece could have a green credit investment rating by the end of the year.

Speaking of the Greek stock markets, he stressed that it was a fifty percent return in the last years and “yet the market is 7.5 times earnings with a nearly four percent dividend.”

No matter what stocks you own, they all increase as economic institutions improve, Stocker added.

Forecasts for the Greek economy

Earlier, it was reported that, in 2023, the Bank of Greece expects the growth of the Greek economy by 2.2 percent. At the same time, according to the forecast, the inflation rate will decrease to 4.4 percent.

The central bank’s governor, Yannis Stournaras, noted the progress of the Greek economy in 2022, when it grew by almost six percent, exceeding the pre-pandemic level in absolute terms.

Speaking of positive trends, the inflow of foreign investment in Greece over the last two years has reached a twenty-year record, and the unemployment rate has fallen below 2010 levels.

At the same time, the European Commission’s projections for the Greek economy were more conservative with 2023 growth expected at 1.2 percent. Nevertheless, the Recovery and Resilience Fund (RRF) has provided crucial support, and governmental measures have mitigated the impact of energy prices on business inputs and household incomes.

American investment in the Greek economy

Previously this year, US Ambassador George Tsunis confirmed increased US investments for Greece in 2023. He highlighted the strengthening Greece-US relations, attributing it to collaborative efforts by the government, the American-Hellenic Chamber of Commerce, and the business community. Tsunis noted significant investments from companies such as Amazon Web Services, Microsoft, JP Morgan, and Meta in Greece.

He expressed confidence in the future and emphasized the surge in Foreign Direct Investments. Tsunis further stated that more American companies are entering the scene, acknowledging Greece’s talent pool and untapped potential. These investments span various sectors, including technology, 5G optic fibers, energy, tourism, and shipping.

Tsunis also highlighted US support for Greece’s pivotal role in diversifying supply sources. He underscored the alignment of interests and values between the two nations.

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