Greece Becomes World’s Top Stock Market Thanks to Distrust in U.S.

For years, Greece was known as the country that nearly broke the eurozone. Its economy was crushed by debt, its banks were unstable, and investors avoided it.

Today the picture looks very different. Greece has become one of the world’s best performing stock markets. Investors who once turned away now see Athens as a place of opportunity.

Investors Are Fleeing Wall Street

The Greek stock index has risen 43% this year, beating nearly every other market. The reason is not just Greece itself, writes El Economista.

Money that used to flow into Wall Street is looking for new homes. Some investors want emerging market returns, but they also want the safety of Europe. Greece offers both.

Tourism and steady growth have helped the economy recover. In March, Moody’s restored Greece’s investment-grade rating after 14 years in junk status.

That was an important signal for investors. It showed that Greece had entered a new stage after its long crisis.

Data shows the shift clearly. Morningstar reports that U.S. equity funds lost almost $25 billion this year. At the same time, more than $21 billion went into Europe.

Better Economy

Greece was one of the main winners of that move. The Greek economy is in better shape than many expected. GDP grew 2.3% in 2024 and is expected to keep rising above 2%.

Household spending is up. Jobs are growing. Investment has been supported by European Union programs. Debt is still high, but it is slowly falling.

Banks are at the center of the boom. They make up 60% of the Greek index. Rising interest rates across Europe have pushed bank profits higher.

National Bank of Greece has more than doubled in value this year. Analysts say Greek banks are still trading at a discount compared to their European peers, making them attractive to investors.

Greece is not alone. Poland and Hungary are also seeing big gains. Poland’s energy sector and Hungary’s manufacturing drive are pulling in foreign money.

But Greece stands out. A country once seen as Europe’s weak link is now leading the pack.