The Economist named Greece the biggest international success story of 2023, placing it, for the second year in a row, at the top of the list of 35 countries with the best performances on various fronts and across several categories. A truly impressive achievement for an economy that was, until recently, synonymous with mismanagement.
The key question today is whether Greece can replicate the success acknowledged by the infamous economic newspaper. However, economists respond with scepticism, asserting that it won't be as straightforward. Greece is now in a higher rating category, where its structural advantages are weaker, while its GDP also remains approximately 22% below the level it was before the debit crisis.
The Economist collected data on five economic and financial indicators - inflation, "inflation range", GDP, jobs and stock market performance - resulting in a score for each country they analysed. Based on these criteria, Greece was ranked in first place, achieving the highest overall score.
The Growth Rate
On the development front, credit agencies agree that Greece is definitely expected to be a success story again. The majority of analysts estimate that the Greek economy will continue to "outpace" the Eurozone, recording rates of around 2.4% on average over the next 2 years, at a time when average growth in the Eurozone will be below 1%.
A steady stream of inward investment from internationally recognised companies such as Pfizer and Microsoft shows that "Greece is no longer regarded as one of Europe's sickest men."
On the Greek Prime Minister's watch in August of 2022, Greece was authorized by its creditors to leave the surveillance mechanisms that had been imposed on it for the previous 12 years. With the country having to beg for a series of huge bailouts, which are now being repaid early, Greece can now borrow regularly once again.
Kyirakos Mitsotakis has transformed the way citizens interact with the state with an impressive digitalization program. He has cut corporate taxes and raised the minimum wage and pensions whilst simultaneously managing to reduce Greece's extreme debt-to-GDP ratio. "We've done a pretty good job in very taxing times," says Mr. Mitsotakis.