Moody’s Investors Service has announced an upgrade of the government of Greece’s long-term local currency and foreign currency issuer ratings from Ba3 to Ba1. Additionally, Moody’s has changed its outlook on Greece to stable from positive.
Strong Outlook for Greece’s Economy
According to Moody’s, this upgrade is based on the belief that Greece’s economy, public finances, institutions, and banking system are currently experiencing significant structural changes. These changes are expected to lead to a considerable improvement in credit metrics and enhance resilience against potential future shocks.
Projected GDP Growth
Moody’s predicts that Greece will achieve an average annual real GDP growth of 2.2% for the period 2023-2027. This growth projection represents a substantial improvement compared to the average growth rate of 0.8% per year seen in the five years prior to the pandemic.
While acknowledging the positive trends in Greece’s economic performance, Moody’s also takes into account the existing structural challenges, including a significant current-account deficit and a high government debt burden. The stable outlook reflects the balance between these positive and challenging factors.
For more information, please contact Moody’s Investors Service.