According to a report published in Business Insider, Greek stocks are on track for their best year in two decades as “investors place faith in a new leader to fulfill his promises and bring growth to the previously ailing economy.”
International investors are looking for the country’s new leader, Kyriakos Mitsotakis, to deliver on his campaign promises of investment in economic growth.
The Athens Stock Exchange General Index, which tracks Greek stocks is up about 33% year-to-date, besting its European peers and putting it on pace for its best annual return since 1999.
Business Insider reports that The Athex now trades with a higher price-earnings ratio than the Stoxx Europe 600 Index, a collection of companies spanning the entire continent.
The Greek index began its rally just before the new year as investors began to expect a July victory from Kyriakos Mitsotakis in the country’s next election.
Finance writer Ben Winck says “The new leader has promised new jobs and increased economic investment during his campaign. Investors now look to Mitsotakis to see if he can deliver on his statements and continue the economic bull run.”
The Greek economy plummeted through 2008 as the global financial crisis wreaked havoc on the euro. Though the monetary policy enacted by the EU helped larger nations like Germany and France recover from the recession, the regulations sent Greece into a deep economic depression and pit of debt.