The Athens Stock Exchange has outperformed 34 countries in terms of stock returns
British magazine The Economist analysed the best-performing economies in 2023. It included assessments of 35 countries. The Athens Stock Exchange performed well in the trading platform category.
The Economist ranks each economy on several indicators, including:
– core inflation;
– its range;
– GDP level;
– the employment situation;
– inflation-adjusted stock prices.
Overall, the Greek economy performed well and was on par with other developed countries. At the same time, the Athens Stock Exchange led the way, with its share price outperforming the other exchanges by a wide margin.
Details of the analysis
It is worth noting that the Economist’s survey has become a key benchmark for assessing stock market returns. The publication analyses the situation on the basis of real profitability minus inflation. This approach makes it possible to compare the dynamics in countries with high inflation rates, such as Turkey.
Regarding real returns, the Greek market ranks first by a wide margin. For comparison:
– for the first 9 months of 2023, the figure for Greece was 43.8%;
– shares on the Polish stock market had a real return of 24.4%;
– Turkey is in third place with 20.6%.
Eight countries on the list had negative returns, while 15 had single-digit returns.
Analysts at The Economist noted that the value of the Greek stock market rose by 40% over the year. According to the publication, the rise was due to increased investor interest. The Greek economy has good prospects thanks to the government’s new reforms. Despite the activity in the equity sector, the country’s economy has still not recovered from the crisis of the 2010s. However, the IMF also noted Greece’s successes, particularly in digital transformation and market competition.
Reactions to Greece’s leadership
The high real returns on Greek equities have provoked mixed reactions from experts. Some argue that the market has become too intense and could collapse during a downturn. However, some are optimistic, including businessman John Paulson. He believes that the Greek market has entered a favourable development cycle and that yields should rise. According to Paulson, the key condition for success is continuing economic reforms. The latter should aim at a long-term perspective leading to the state’s prosperity. The businessman also notes that local assets are becoming increasingly attractive to investors. For example, Piraeus Corporation’s shares for 2023 have increased by 120%. Other companies have also shown excellent results.
