GIG Economic Bulletin – June 27, 2022

Several investment houses have issued improved forecasts for the Greek economy in 2022, with estimates ranging between 3% and 5.5%. Japan’s R&I became the fourth agency to nudge its rating of Greek debt up one step from investment grade.

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International forecasts for the Greek economy are going from strength to strength with yet another upgrade of Greek debt from Japanese ratings agency R&I, and significantly improved growth estimates from leading international investment banks – in the range of 3% and 5.5%. Meanwhile, a new renewable energy law is set to expedite the licensing of RES projects reducing the lead time to 14 months, while introducing a long-awaited framework for energy storage. Five large-scale PPP infrastructure projects valued circa €1.5 billion have been approved by the special ministerial committee.


Japanese ratings agency R&I upgraded Greece to BB+ with a stable outlook, becoming the fourth institution after S&P, DBRS and Scope to rate Greek debt just a step away from investment grade.

Investment houses have improved their growth estimates for Greece. UniCredit is the latest to revise its forecast for 2022, up to 3.8%, from 3.3%. DZ Bank had a major upwards revision to 4.2%, from 1.9% previously. UBS sees 4% in 2022 and 4.7% in 2023. Bank of America places growth in the region of 3%, while Capital Economics predicts 5.5%. The improved forecasts come despite widespread expectations of continuing inflation and a recession in Europe.

Industrial turnover jumped 33% YoY in April according to ELSTAT, recording a monthly increase of 2.6%.


Greece climbed three places to 21st on EY’s Renewable Energy Country Attractiveness Index, thanks to the strategic national goal of doubling installed RES capacity by 2030 and the recent inauguration of a 204-MW photovoltaic park, one of the largest in Europe.

A new renewable energy law is set to shorten the lead time for licensing of RES projects from five years to 14 months, cutting the number of steps from seven to five and digitising the application procedure, while introducing a framework for energy storage.

The Greek and Egyptian grid operators have agreed to fund the initial cost-benefit analysis for the Greek-Egyptian electrical interconnector out of the REPowerEU budget.

DEPA Commercial increased its market share from 39% to 55% between 2020 and 2021. The company’s 2021 trading profits came to €241.5 million, however its results after tax and dividends came to a loss of €23.3 million.


An ambitious plan for the Greek railways aims to make the ports of Alexandroupolis and Thessaloniki hubs for the transport of agricultural products bypassing the Black Sea. The plan includes a €1.2-billion budget for PPPs to upgrade the existing OSE network and another €1 billion for the Alexandroupolis line.

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According to Alpha Bank, infrastructure projects now account for 37% of value added and 45% of turnover in the construction sector, displacing buildings from the top spot. The trend is expected to continue to 2030, with 118 scheduled projects valued at €43 billion.

Five PPP projects with a combined budget of €1.5 billion have been approved by the special ministerial committee, including the Drama-Amphipolis highway, the EO2 upgrade, the Enipeas Dam, two new dams in Crete, and an irrigation network in Xanthi.


The Greek shipping registry has climbed a notch in the rankings published by the Paris MoU Committee, making it the sixth highest-quality registry globally.

Greek shipowners’ investments in LNG carriers are approaching $3 billion since the start of the year, with 13 new ships currently on order.

At least 31 proposals for improvement projects concerning ports on the islands have been submitted to the 2021-2027 round of ESPA funding, with a combined budget of €167.3 million.


More than 14 million travellers arrived at Greek airports in the first five months of the year, matching 86% of 2019 levels, according to preliminary data from the Civil Aviation Authority. International arrivals in May surpassed May 2019 levels.

There is growing evidence to suggest travel receipts this year will be back to the pre-pandemic levels of 2019, despite flight disruptions across Europe. The first four months of 2022 have recovered 87% of the 2019 receipts according to Bank of Greece figures, while average expenditure per trip has increased by 20.3%.

Cruise ship arrivals in Rhodes since the start of the year were 51% above the same period in 2019, suggesting that the island is headed for a 10-year high in terms of cruise traffic. At least 417 arrivals are scheduled for the full year, compared to 258 in 2019.

Real Estate

A KPMG report on “The Future of Real Estate & Construction” says the sector is set to benefit from €6 billion of building projects in Attica and €13 billion in northern Greece. Demographic trends, technology, and government policy will be the other major factors shaping the industry.

Logistics is the second most attractive sector for investors in Greek real estate, attracting €200 million in 2021 according to data from Athinaiki Oikonomiki – JLL. Around 250,000 sqm of development are slated by end of 2024.

Lamda Development has presented plans for more housing development at Hellinikon worth an estimated €1 billion which will go on sale in the autumn. GEK Terna and Hard Rock published updated plans for the €1.1-billion Integrated Resort Casino.

The special ministerial committee has approved the €840-million Saronida Olympos Golf Project under the strategic investment framework.


The Greek-UAE Business Forum hosted over 60 UAE funds and firms interested in investing in Greece. ADQ has signed an agreement with the HDBI for €4 billion of investments, while Mubadala has agreed to joint investments of €400 million.


Three suitors have submitted binding offers to Alpha Bank for its portfolio of 570 properties with a commercial value of €0.5 billion. Prodea-Invel, Dimand-EBRD-Premia, and Brook Lane are the three participants, with a final decision due in July.

Pancreta plans to list on the ASE in the coming year under the new name Candia Bank. Pancreta recently merged with Chania Cooperative Bank and acquired HSBC’s Greek business.

Stock Market

The ASE general index halted its recent downward streak with 1.14% weekly gains to close Friday at 834.83 points, assisted by gains of 0.38% in the large caps and 0.65% in banks. In the year to date, the index has fallen by -6.55%.

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