Moody’s and the potential upgrade of Greece’s credit rating to investment grade is in focus on Friday. The US rating agency is the only one that keeps the Greek debt one notch below the investment grade, at Ba1 with a stable outlook for a year.
In March, Moody’s confirmed the sustainability of the Greek debt due to its favorable profile and the high cash reserves of the State, although the ratio of debt to GDP remains very high. It also welcomed the upward trajectory of the economy, predicting growth of 2.4% for this year and 2.3% for 2025.
It even emphasized that European Union funds and private investments, together with the continuation of reforms, will contribute to the rise of potential growth and to some extent offset the negative effects of unfavorable demographic data.
The verdict of the Japanese
A few days ago, on Monday September 9, the Japanese rating agency R&I confirmed the rating of the Greek economy at BBB- with a stable outlook. It underlined that an upgrade could be considered when the rating agency receives clear signs that the improvement recorded both at the fiscal and financial levels will be sustained.
According to R&I, the Greek economy records stable performances. More specifically, as of 2021, the Greek economy is growing at a rate that exceeds the European average. In 2023, GDP increased by 2%.
“In addition to the steady trend of private consumption supported by the improved labor market environment, the country saw a significant increase in investment thanks to accelerating foreign direct investment inflows… Exports rose year-on-year due to higher tourism demand. As for 2024, the economy has maintained a similar growth trend continuing from the previous year, with the government forecasting real GDP growth of 2.5%, while the European Commission sees it at 2.2%.”
