After seven difficult years financially, word has been circulating that Greece’s economy is on the up, and this was confirmed on Saturday when the country’s credit rating was upgraded.
The announcement was made by Standard & Poor (S&P) Global Ratings, taking Greece’s credit rating from a ‘B-‘ to a ‘B’. While still considered to be below investment-grade, it nonetheless shows that the economy is on a path to recovery.
“The upgrade reflects Greece’s steadily improving general government finances and its gradually recovering economic prospects,” said S&P analysts.
“The government ran primary fiscal surpluses in 2016 and 2017 while the economy exited a multiyear recession last year.
“The positive outlook on Greece reflects further upside rating potential from the policy and financing environment over the next year.”
Meanwhile the Greek Finance Ministry shared the sentiment in an official e-mail statement, reports Kathimerini.
“The positive developments that strengthen the feeling that the markets and investors’ confidence in the Greek economy is being steadily restored are not isolated incidents anymore,” said the Ministry, adding that the news was “a hint for further positive developments in the future”, following on from similar positive announcements by Moody’s and Fitch in 2017.
Greece’s third bailout program concludes in August 2018, and the Ministry is confident the country will have safeguarded its stable access to the markets.
The S&P rating agency has projected real GDP growth of 2 per cent for the Greek economy this year.