EU Commission Forecasts Cyprus and Greece to be among the fastest growing economies in the EU.

Macro Political

• According to the EU Commission’s Spring 2025 Economic Forecast, Greece’s economic activity is expected to expand by 2.3% in 2025 and to maintain a broadly similar growth in 2026 (2.2%) supported by the sustained consumption and EU funded investment growth. Inflation is expected to moderate to 2.3% by 2026, with strong wage and demand developments still putting pressures on consumer prices. Helped by robust GDP nominal growth, the Debt to GDP ratio continues to fall and is expected to reach 140.6% in 2026.
Source: EU Comission

• Scope Ratings in its European Bank Operating Environment 2025 Report characterized Greece’s banking operating environment as moderately supportive to high. The agency stated that they are forecasting output growth of 2.2% in 2025 and an average of 1.6% from 2026 to 2029.Regarding the banking sector, the agency noted that the Greek banking sector is experiencing a period of revival, driven by strong corporate and consumer lending, high interest margins, declining cost-income ratios and risk costs, and solid asset quality. Additionally, the four largest Greek banks are currently among the most profitable institutions in the EU, benefiting in part from their dominant domestic market share. Moreover, barring an unexpected recession, the agency forecasts double-digit returns on average equity in 2025-2026.
Source: Scope

Markets:

• Titan announced that following the receipt of all customary regulatory approvals, the transaction regarding the divestment of its 75% share in Adocim Cimento Beton Sanayi ve Ticaret A.S, has now been finalized.
Source: ATHEX