The S&P report itself is more than positive and so eloquent that I personally have nothing to add, commented the Minister
For a more than positive report, the Minister of National Economy and Finance, Kostis Hatzidakis, spoke about the upgrade of the Greek economy from S&P to investment grade, stressing that it is our patriotic duty to move forward with seriousness.
“S&P is the fourth rating agency in a row and the second one recognized by the ECB to assign an investment grade to Greece in recent months after 13 years. The S&P report itself is more than positive and so eloquent that I personally have nothing to add. It should be read by those who constantly try to underestimate the efforts and results of government policy in the economy. The country is facing a historic window of opportunity as the right mix of economic policy and political stability are combined. And it is our patriotic duty to take advantage of the opportunity and move forward for the benefit of all Greeks, especially the weakest. As I recently emphasized at ECOFIN, Greece is and will remain oriented to the policy of fiscal seriousness, regardless of the outcome of the negotiations that are underway in the European Union for the new fiscal stability rules. A policy that is the only stable basis for maintaining the country’s credibility in international markets, attracting investment and sustainable development».
It is recalled that S&P underlines in its relevant report how it assigns Greece the investment grade because the following factors are present:
1. The significant fiscal consolidation that has been achieved, which is supported by a rapid recovery of the economy and results in the Greek government exceeding the fiscal targets it sets itself.
2. The clean mandate New Democracy received in the elections, which allows the government to continue with reforms.
3. The continued reduction of public debt which, according to S&P, is expected to reach 145% of GDP in 2023 and 138% in 2026, compared to 189% of GDP in 2020. The house also notes that while debt remains high, “its profile is one of the most favorable of all the states we assess as the weighted average duration of central government debt was 17.2 years at the end of June 2023 and interest payments correspond to a relatively low (5.6%) rate of the revenues of the general government”.
As noted in the report: “The recovery from the debt crisis and subsequently from the COVID-19 pandemic boosted investment growth and confidence in the economy. The rapid digitization of public services has led to significant progress in reducing tax evasion and improving public sector efficiency. The strong performance of tourism, shipping and manufacturing in recent years, along with progress in the sale and resolution of non-performing loans, has prompted additional investment.”
It still has the highest growth rate compared to other EU countries, despite the effects of natural disasters. And this is because of the record-breaking performance in tourism, the increase in investment, the decrease in unemployment and the improvement in the financing of the economy. Also, that inflation is starting to level off and moving towards the ECB’s target of levels below 2%»
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