JP Morgan has projected that Greece will be upgraded to Developed Market status by major index providers by 2026. The American bank pointed out that the FTSE has already confirmed Greece's upcoming promotion, and MSCI is consulting on a similar proposal aimed for implementation in August 2026. This move would signal a significant change in Greece's financial status, reflecting its compliance with most criteria required for Developed Markets.

However, JP Morgan also cautions that the net impact of passive capital flows may be slightly negative. The bank anticipates that while the upgrade signifies improved investor confidence, it may lead to fund outflows as investors from Emerging Markets (EM) might sell Greek stocks to realign their portfolios with new classifications. Meanwhile, funds categorized under Developed Markets (DM) could also display reluctance, potentially impacting the overall market dynamics.

This situation presents both opportunities and challenges for the Greek economy. While the upgrade is seen as a recognition of Greece’s progress in stabilizing and developing its markets, the potential for negative capital flow suggests a need for careful management of investments and a robust strategy to attract and retain foreign capital. This balance will be crucial as Greece transitions to its new status in the international financial community.