Greek economy and banks see mixed outlook from Moody’s and Morgan Stanley

The Greek economy and banking sector are facing a mix of revised growth forecasts and heightened investor optimism. Moody’s has lowered its economic growth projections for Greece to 1.7% for both 2026 and 2027, down from a previous estimate of 2.1%. Despite this downward revision, the agency maintains that Greece’s economic fundamentals remain strong, supported by European fund absorption, private investment, and improved governance.

In contrast, Morgan Stanley has adopted a bullish stance on Greek banks, identifying Greece as having some of the strongest credit expansion prospects in Europe. The firm raised target prices for several systemic banks, including Alpha Bank, Piraeus Bank, Eurobank, and National Bank of Greece. Alpha Bank was highlighted as a Mid-Cap Top Pick for Europe due to its attractive risk-reward profile.

These developments coincided with a positive turn in the Athens Stock Exchange, where banking stocks led the index into positive territory despite broader negative trends in European markets. While global markets face uncertainty due to geopolitical tensions in the Middle East and rising bond yields, Greek financial institutions are benefiting from increased capital inflows and credit growth expectations.