The draft state budget for 2026 was submitted yesterday by the Greek government to Parliament

Macro/Political:

The draft state budget for 2026 was submitted yesterday by the Greek government to Parliament. According to the draft budget, the Greek economy is expected to record a real GDP growth of 2.2% in 2025 and 2.4% in 2026. The total value of GDP is expected to rise to EUR 260.9 bn. Investment growth is projected to accelerate, with the rate of change increasing to 5.7% in 2025 and 10.2% in 2026. Exports are also expected to grow by 4.5% in 2026, while private consumption is forecast to increase by 1.7% next year. Domestic inflation is projected to moderate to 2.2% in 2026, compared with 2.6% in 2025. The debt to GDP ratio is expected to decline to 137.6% in 2025 and further to 135.2% in 2026. The primary balance is projected at 1.0% of GDP in 2025 and 1.1% in 2026.
Source: Capital.gr

R&I Credit Agency upgraded the Greek economy’s rating to BBB from BBB-, with the outlook remaining stable. The agency noted that the main reasons for the upgrade include the economy’s continued firm growth, supported by strong consumption and investment. The government debt ratio remains on a downward trajectory, further improving debt sustainability. The fiscal balance has turned into a surplus, driven by structural reforms implemented by the government to curb tax avoidance and evasion. Financial sector stability has also strengthened, reflecting significant progress in reducing NPEs. Finally, the Agency under Prime Minister Kyriakos Mitsotakis administration, political stability remains intact, with no major concerns supporting the government’s ongoing efforts toward economic revitalization and fiscal consolidation.
Source:R&I

Former Prime Minister of Greece Alexis Tsipras and resigned from Parliament yesterday, further fuelling speculation about his founding a new political party. “I am resigning as a SYRIZA MP. I am not giving up political action,” Tsipras said.
Source: E-kathimerini

Markets:

Piraeus Bank raised EUR 600mn at a yield of 6.125% through the issuance of a PNC7 AT1 bond. The final orders’ book closed above EUR 3bn.
Source: Bloomberg

Fitch affirmed Metlen’s credit rating at BB+ with a stable outlook. The affirmation reflects Metlen’s updated 3–5-year plan, which enhances end-market diversification and vertical integration in utilities and metals by expanding capacity and output, as well as developing new growth pillars, although it also increases capex requirements.
However according to the agency, the plan entails execution risks related to new business lines, asset rotation, and customer base expansion. Tight leverage headroom over the next three years is balanced by management’s commitment to the rating, a strong record of conservative budgeting, and a build-operate-transfer (BOT) pre-sale policy that mitigates execution risk. Financial flexibility is further supported by strong liquidity and the option to defer growth capex.
Source: Fitch Ratings

Macro/Political

Following yesterday’s meeting between Cyprus President Nikos Christodoulides, Minister of Labour and Social Insurance Yiannis Panayiotou and Minister of Finance Makis Keravnos, it was decided that the two ministers will hold discussions to reach an agreement between the trade unions and employers’ organisations regarding the Cost of Living Allowance (CoLA). The ministers stated that they will jointly arrange meetings next week with the trade unions and employers’ organisations, and if there is any positive progress, a joint meeting will be scheduled within the same week.
Source: StockWatch

According to seasonally adjusted data released by CyStat, in September 2025 the number of registered unemployed persons in Cyprus decreased to 9,711 compared to 10,053 in previous month.
Source: CyStat