Europa Posted on 2026-01-29 10:22:00

Greece's economy is making progress - The Greek market is seen by international investors as more mature and reliable

From Dorian Koça

Greece's economy is making progress - The Greek market is seen by

Following Greece's economic recovery, the country now faces a new prospect: a possible return to developed markets. However, analysts note that the return to "normalcy" could also bring new risks, especially as the Greek economy becomes increasingly exposed to external shocks.

According to an analysis by the European Stability Mechanism (ESM), European sovereign bond markets have largely reconsolidated since 2019, following years of fragmentation following the eurozone debt crisis. For Greece, this translates into a clear improvement in financing conditions.

In addition to lower borrowing costs, Greece is facing a second important development. MSCI has launched a public consultation on the possible reclassification of the Greek stock market from Emerging Markets to Developed Markets status.

MSCI is one of the world's leading providers of stock indices, market data and analysis. Its indices are used by investors, fund managers, banks and insurance companies around the world to make investment decisions and create financial products. By analyzing risks and opportunities, MSCI acts as a "common language" for global markets, directly influencing international capital flows.

On a practical level, such an improvement would mean that the Greek market is seen by international investors as more mature and reliable. Many large investment funds, such as pension funds and institutional investors, base their allocations on MSCI indices. Inclusion in Developed Markets would make Greece "visible" to a broader and more stable investor base.

This could lead to increased capital inflows into the Greek stock market, greater liquidity for listed companies, and lower financing costs for businesses. At the same time, it would serve as a strong signal of confidence in the country's overall image abroad.

MSCI has already acknowledged that Greece meets the criteria for economic growth and has made progress in market access and operations. In the past, the main obstacle was market size and liquidity, issues that are now being reassessed in light of broader European market integration. A final decision is expected by the end of March 2026, with possible implementation in the index review in August 2026.

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