Greece: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis

The Greek economy has experienced a strong post-COVID recovery and much improved sovereign sustainability. Growth rebounded, outperforming most Euro Area peers, and the unemployment rate steadily declined to single digits. Substantial fiscal consolidation on the back of strong growth has reduced public debt-to-GDP and the medium-term risk of sovereign stress is assessed as moderate. The country regained an investment grade rating from all major rating agencies by early 2025 with the sovereign spread currently in line with euro area peers.