Goldman Sachs: Greece ready for “the final step” to achieve investment grade status

goldman sachs greece

The Greek economy is outpacing growth and experiencing lower inflation than the Eurozone as Greece prepares for national elections on May 21, explains Goldman Sachs.

Although opinion polls show a clear lead for New Democracy and Prime Minister Mitsotakis, it is unlikely that the first party will be able to secure a parliamentary majority, Proto Thema reported.

Therefore, either a coalition government will be formed between ND and PASOK, or new elections will be called for at the beginning of July, utilising the new electoral system that provides bonus seats to the largest parties.

The bank explains that ND may be motivated to push for the July vote to achieve a one-party majority or, at the very least, greater strength in the new governing coalition.

The election outcome will be important in accelerating the implementation of the RRF and ensuring long-term growth through capital accumulation.

A convincing delivery of the RRF to promote and facilitate the economy's structural transformation will likely be the final step for Greek government bonds to regain an investment-grade rating.

READ MORE: Greek inflation rate dropped to 3.0% in April.