The US bank Goldman Sachs believes another upgrade of its credit rating is possible in the autumn for the Greek economy.

“We continue to see solid prospects for investment recovery in Greece. European Recovery Fund disbursements are expected to peak in 2024-2025 and the program will increasingly shift towards supporting capital spending. Moreover, the institutional quality of the Greek state continues to improve, restoring citizens’ confidence in public institutions to its highest level since the sovereign debt crisis. Recently, the World Bank’s Infrastructure Development Benchmarking report, which focuses on public-private partnerships for infrastructure development, placed Greece at the top of the ranking in Europe.”

Improving the Greek labour market is particularly necessary given the country’s demographic instability. The permanent population has declined by nearly 5% over the past decade and the country needs to increase labour market participation to fuel medium-term growth. The breadth of the labour market boom reflects the broad nature of the Greek recovery, which extends from services, as is commonly recognised, to manufacturing. The manufacturing sector in Greece accounts for about 16% of Gross Value Added and 13.5% of GDP. But, unlike other economies in the region, Greece’s strong recovery in manufacturing activity has been accompanied by a surge in labour productivity, benefiting from above-average investment growth.