BB+ rating stable
The rating agency S&P confirmed Greece's BB+ rating (one notch below investment grade), while at the same time upgrading the outlook to positive from stable.
“The positive outlook reflects our view that Greece will build on its recent strong track record of implementing structural reforms. In addition, the government closed the fiscal deficit faster than expected, through improvements that we consider to be generally sustainable,” the house points out.
It is noted that the BB+ rating is one step below the investment grade.
The house points out that the structural reforms of Greece and the resilience of its economy in combination with the support of the E.U. have improved government finances and financial stability.
After the fastest fiscal consolidation within the EU in 2022, the primary balance of the general government of Greece has returned to surplus and under these conditions the house expects further fiscal improvements in the coming years.
As for investments, the S&P notes that they rose to 21% of GDP at the end of 2022, strengthened by 9 percentage points over the past three years. The house believes that this development trend will continue based on the 30.5 billion euros of the EU Recovery and Resilience Fund (RRF) funds available in Greece.
Staikouras: Half a step before the investment stage< br />“The rating agency “Standard & Poor's” today proceeded to improve the perspective of upgrading the Greek economy (outlook) to “positive” from “stable”. Thus, it becomes the second international rating agency, which in 2023, places the country half a “stair” before the investment level”, stressed the Minister of Finance.
And he added: “This is yet another very positive development, which follows the 12 upgrades of the Greek economy over the last 4 years or so, despite successive, exogenous crises.
Development that is a fruit – and, at the same time, certification – the responsible, efficient and socially fair economic policy of the Government, the insightful publishing strategy, the maintenance of cash reserves at safe levels and the implementation of essential structural changes that lead the country forward.
It comes, in continuation of the official statistics, which were announced today and confirm, that Greece achieved the biggest – pan-European – fiscal improvement in 2022, despite the fact that the social support measures were among the most generous in Europe.
Specifically, last year our country managed to reduce the primary deficit to zero, even recording a small primary surplus, increase its GDP by 26 billion euros and reduce its public debt by 23% of GDP. So, it becomes clear that the Greek economy has turned the page. It moves, unwaveringly, on the path of fiscal stability and responsibility, ensuring the conditions for the continuation of the dynamic development path that the country has entered.
Today's movement of S&P demonstrates the drastic improvement of credibility and of the prospects of the Greek economy. It also confirms that if the current prudent and effective economic policy continues, the great national goal of reaching investment grade by 2023 is entirely feasible and realistic.”
