Against another challenging backdrop, the Global X MSCI Greece ETF (NYSEArca: GREK) is one of this year’s best-performing single-country exchange traded funds. Even with Europe ETFs soaring, GREK stands out with a year-to-date gain of 26.4%.
And when remembering that Greece is officially classified as an emerging market, GREK is also one of this year’s best-performing single-country emerging markets ETFs.
Last year, Greece registered a primary budget surplus of €7.4 billion in the year ended November, or nearly €4 billion over its target due to lower spending and higher revenues. The IMF has pressured Europe to cut Greece’s budget target to a primary surplus of 1.5% of gross domestic product instead of its current goal of 3.5%.
“After seven years of tax and social reform that has slashed pensions, wages and social benefits, Greece has one of the best-run public finance performances in the euro zone. Last year the country had a budget surplus of 0.7 percent of GDP, almost as much as Germany. In 2009 the deficit was 15.6 percent of GDP,” reports CNBC.
The Eurozone macroeconomic environment has steadily improved, with a significant uptick in manufacturing and services PMIs over the end of 2016. Eurozone growth may continue to pick up speed ahead after the European Central Bank revealed increased loan demand and easing of terms and conditions on new loans to help stimulate the economy.