GIG Economic Bulletin – July 11, 2022

Analysts’ GDP growth projections remain strong in the face of higher inflation forecasts, with HSBC now forecasting 6.5% for 2022. A “green” bond by Lamda Development has exceeded all expectations, attracting over €700 million in offers for a €230-million issue.

Economic BulletinInsights
Greece’s Ministry of Environment and Energy has unveiled plans to launch its first tender under the new renewables law – which reduces the licensing period from five years to 14 months – in September of this year. HSBC increased its GDP growth forecast for Greece to 6.5% for 2022, and the developer of the Hellinikon mega project Lamda Development issued a “green” common bond loan that was more than three times oversubscribed with offers surpassing €718 million.


HSBC has upped its GDP growth forecast for the Greek economy to 6.5% from its previous figure of 4%, based on strong performance in the tourism segment. Inflation is seen rising to 9.2%, up from the previous forecast of 6.5%.

The IOBE think tank sees Greece growing by 3.5% to 4%, despite high inflation. This forecast hinges on maximising the benefits from EU structural funds and the RRF. IOBE predicts inflation at 9% to 9.6%.

Scope Ratings says that the ECB’s tool for countering fragmentation in the sovereign bond markets, now known as the Transmission Protection Mechanism, will support Greece’s credit rating. Along with S&P and DBRS, Scope ranks Greece just one notch away from investment grade.

In its latest report, Fitch Ratings kept its rating of Greece at BB with a positive outlook. The agency noted that the country’s high income per capita, and high human development and governance scores are counterbalanced by high NPL levels and large public debt stocks.


The Energy Ministry has announced the first auction for RES capacity under the new system. It concerns 1,000 MW of wind and PV and will take place on September 6. A total of four tenders are planned before the end of 2022, of which two will jointly focus on wind and solar, one will be exclusively for small PV, while the four one is expected to be a pilot auction for wind and solar coupled with energy storage. 

HELPE is partnering with RWE in a 50-50 venture to develop offshore wind parks. HELPE’s RES portfolio currently totals 300 MW including the mega-photovoltaic park in Kozani, while it has over 2 GW of solar and wind in development with a horizon of 2030.

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The agreement for the formation of Hellenic Hydrogen, a joint venture between PPC and Motor Oil in the green hydrogen value chain was signed last week. The participation will be split 49/51 between the two companies.

Mytilineos signed a contract with IPTO/ADMIE for the construction of a 400kV electricity transmission line between Greece and Bulgaria.


Hellenic Train (the new name for TrainOSE) published its strategic plan to become a leader in freight transport in the Balkan region, including the addition of 10 hydrogen trains to the network over the next decade.

Real Estate

Lamda Development’s “green” common bond loan was over three times oversubscribed with offers surpassing €718 million for the €230 million issue, while the coupon settled at the lower end of the range at 4.7%. The company announced that 73% of the book will be allocated to private investors, of whom over 14,000 participated.

Lamda Development plans to invest €500 million in RES and energy storage, “green” buildings and a “smart city” at the Hellinikon site as part of a plan extending to 2026. Up to €230 million of funding will come from its green bond.

Private sector construction activity increased by 3.2% Y-o-Y in March as measured by the number of construction permits, but contracted by -6% measured by volume and -15.1% by surface area, according to ELSTAT. The rising cost of materials is believed to be behind the slowdown in building activity.

According to IOBE, over the period 2022 to 2026 a total amount of €27 billion – €13.3 billion in grants and €13.7 billion in loans – will be directed to the construction sector, backed by the RRF. Over the medium-term, annual allocation to construction of infrastructure and housing is seen reaching 4.1% of GDP.


Deutsche Telekom has announced the creation of a telecom IT hub in Thessaloniki. The facility will be providing IT services to DT Germany, and 200 local staff will be hired in addition to personnel transferred from abroad.


Aegean’s management is confident of a return to profitability after April saw ticket reservations and sales above 2019 levels, while passenger numbers have reached 90% of pre-pandemic levels. Aegean reported pre-tax losses of €72.5 million in 2021.

Stock Market

The ASE general index managed to regain the symbolic 800-point level after dipping below it during the week’s trading. The index closed at 802.16 points with weekly losses of -0.45%. Banks once again led with -2.28% weekly losses, despite a strong recovery towards the end of the week.

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