Hot New Play in Stock, Bond Markets: Greece Is Suddenly Booming

The country is back on investors’ radar after a decade in the wilderness.

As Greece prepares for what’s expected to be a record influx of sun-seeking tourists, it’s also welcoming visitors of a different sort: deep-pocketed foreign investors who abandoned the country after its default more than a decade ago.

Flows of outside money into stocks and bonds have jumped about 14% this year, propelling the Athens equity market into the top three performers in the world with a gain of more than 40%. Greece is the euro area’s best-performing bond market, with borrowing costs falling more than half a percentage point in 2023.