Greece gets Canadian upgrade

09:02 7/9/2024 - Πηγή: iEfimerida

Greece's economic outlook is shining brighter than ever, as the Canadian rating agency DBRS Morningstar recently upgraded the country's economic outlook from stable to positive.

The positive development comes on the heels of Eurostat data revealing Greece as the second fastest-growing economy in the EU during the second quarter of 2024.

Finance

Minister Kostis Hatzidakis hailed the upgrade, emphasizing that it represents yet another positive signal for the Greek economy.

He noted that this follows successful bond auctions where Greece secured lower borrowing rates than France and comparable rates to Germany.

The DBRS report specifically highlights Greece's fiscal discipline, growth momentum, and the significant improvements in the banking sector.

The upgrade is rooted in DBRS's expectations of continued improvement in Greece's core economic metrics.

The agency anticipates a further reduction in public debt, strong growth prospects, and enhanced political stability. All of these factors contribute to the overall positive sentiment surrounding Greece's economic reforms.

DBRS's report details the progress Greece has made in achieving its fiscal targets, exceeding the EU's average growth rate, and improving its current account balance. A significant reduction in Greece's public debt-to-GDP ratio is expected, projected to fall below 140% by 2027. The report also acknowledges the positive developments in the banking sector, including reduced non-performing loans and improved profitability.

The government's efforts to sell significant shares in systemic banks have further contributed to a more resilient financial system. Additionally, Greece's recovery and resilience plan, supported by EU funding, is expected to significantly enhance the country's business environment and productivity, helping bridge the investment gap with other Eurozone countries.

Greece's growth has consistently outpaced the Eurozone average since 2021, a trend expected to continue. DBRS forecasts GDP growth of over 2% in both 2024 and 2025, fueled by institutional reforms and EU-funded investments. While challenges like high public debt and a persistent current account deficit remain, the DBRS upgrade underlines the strong political commitment to fiscal responsibility. This has led to a rapid improvement in Greece's primary surplus, despite numerous global challenges since 2020.

Finance Minister Hatzidakis welcomed the DBRS report as further validation of Greece's economic strategy.

He reiterated the government's commitment to continuing on this path of economic progress. Overall, the outlook for the Greek economy is increasingly positive, driven by a combination of fiscal discipline, strong growth, and ongoing reforms.

While challenges persist, Greece's commitment to sound economic policies and its resilience in the face of global shocks signal a promising future for the country.

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