JP Morgan kicked off the reports of major companies on the Greek economy for 2025, estimating that this year our country will outperform. Specifically, the analysts said that the Greek economy stands out because it is one of the few countries in the Eurozone that will see GDP growth above 2% and a reduction in the deficit, despite the instability in the European economy.

UNDERWEIGHT FOR THE EUROZONE

The Eurozone is heading in the opposite direction, as JP Morgan is underweight on its outlook. Although euro markets remain cheaper than the US, there are a number of factors that negatively impact the outlook. In particular:

• Inflation appears to be persisting and the ECB's policy is unclear on interest rate cuts
  Trump tariffs, if imposed, will negatively affect the entire European economy and industries will be hit by them
• Growth is anaemic
• The French economy is facing debt problems, while at the same time German industry is running on fumes and recording a significant contraction
• There is political uncertainty, which, combined with the war in Ukraine, increases the risks

GREEK BANKS

On the flip side, analysts are positive on Greek banks. They point out that despite the rally in equities they are still undervalued compared to Europe, while red loans are falling and balance sheets are improving. The fact that they will pay strong dividends makes them more attractive and JP Morgan expects the upward movement to continue.