GIG Economic Bulletin – May 10, 2021

Strong market interest greeted Greece’s latest bond issue, the third this year, with the yield settling at a historic low of 0.2% for the 5-year title.

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Greece’s third bond issue in 2021 draws more than €20 bn in bids, while the 5-year bond raised €3 billion, with a yield settling at 0.2%. Greece’s Stability Programme forecasts economic growth in 2021 of 3.6%, increasing to 6.2% in 2022; and railway investments totalling €2.4 billion are scheduled to commence in the second half of 2021.


The Stability Programme submitted by the Greek government to the European Commission sees 2021 growth at 3.6%, accelerating to 6.2% in 2022. The Recovery and Resilience Facility (RRF) is expected to contribute 1.3% to growth in the current year, while pandemic support measures are projected to reach €40.7 billion, including an extension of €2 billion in 2022.

Manufacturing PMI marked its strongest improvement since February 2020, rising to 54.4 points in May from 51.8 points in April, according to index compilers Markit.


Greece drew €3 billion from the markets in its third successful foray this year. A new 5-year bond issue attracted offers of €20 billion, with the yield settling at a historic low of 0.2%. The PDMA also issued T-Bills with a negative yield of 0.4%, for the first time ever in the past week.

Including the latest bond issue, the country’s cash reserves stand at €33 billion. The next issue could come as early as June, with this year’s borrowing target expected to reach €15 billion against the initial target of €10-12 billion, taking advantage of low yields and strong demand for Greek debt.


Investments totalling €2.4 billion are slated for railway networks in norther Greece, starting in the second half of 2021. A mega-project dubbed Egnatia Railway aims to connect the Greek region and its ports to the neighbouring Balkan countries and Central Europe, creating a regional transport hub.


German tour operators including TUI and DER Touristik have announced their summer schedules to Greece, and are reporting strong demand for packages to destinations including the Dodecanese, the Ionian islands and the Peloponnese starting May 14.

Kefalonia. Copyright: DaLiu /

England published a very short “green list” for the first phase of reopening international travel to and from the country from May 17, which does not include Greece.

Stock Market

The ASE general index dipped -1.46%, slipping below the 900-point mark to close the week at 897.01. The losses were led by Piraeus Financial Holdings which fell by -27.27% following its share capital increase.

Preliminary results for the financial year 2020 published by the 135 listed companies on the ASE show a total turnover of €56.3 billion euros, down -20.8% from 2019, while EBITDA totalled €6.5 billion, down -29.5% from the previous financial year. However, six in 10 listed companies closed the year in profit, aided by low oil prices, demand for packaging and cleaning products, as well as IT services.

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