“Black Sheep” no more: The IMF’s and Germany’s praise for Greece


Greece has gone through fire and rain to get its economy back on track. The improved picture – confirmed by the two credit rating agencies that give the Greek economy an investment grade at long last – was endorsed today by the IMF report and by the meeting between Prime Minister Kyriakos Mitsotakis and German Chancellor Olaf Scholz.

In their joint statements with the German Chancellor in Berlin, the Greek Prime Minister stressed that Greece is making progress and has gone from being a “black sheep in Europe” to becoming one of the most stable economies in the Eurozone, one with record growth, investment and more disposable income for its citizens.

The prime minister noted that “we have two basic principles: An unwavering orientation towards reforms and political stability, ” confirmed in recent elections. We are pursuing a prudent fiscal policy aimed at producing primary surpluses.”

Likewise, while referring to Greek-German economic relations, Mitsotakis noted, “This year we are breaking the tourist arrivals record in our country, with German visitors preferring Greece, German businesses are leading among foreign investors in our country, while the environment is also favourable in bilateral trade as Germany is our second main supplier and the third largest customer for Greek products. In this light, Germany will be the country of honour at the next Thessaloniki International Fair, and I had the opportunity to invite Chancellor Scholz there.”

The Greek Prime Minister did not fail to underline the importance of cooperation in the energy sector, describing the green energy corridor between North and South as being of high geostrategic importance, which he said is an important step both for the decoupling from Russian energy and for the development of renewable energy sources.

The IMF’s data supports Mitsotakis’s remarks. According to its latest relevant report, Greece’s growth rate is 2.5 per cent for 2023 and 2 per cent for 2024, while GDP and debt have returned to pre-pandemic levels. In its report, the IMF highlights that Greece’s economic outlook has improved significantly, with its debt-to-GDP ratio falling below pre-pandemic levels. At the same time, the comments on the new tax bill are positive, yet the IMF recommends limiting wage claims in the public sector and pensioners.



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