WASHINGTON:
On Friday, S&P Global Ratings upgraded Greece’s debt rating to BB+, citing improvement in its economy even as the country grapples with shocks from war in Ukraine.
“The upgrade reflects our expectation of continued improvement in the effectiveness of Greek politics, while the fallout from the war in Ukraine appears manageable in light of the considerable buffers in the private and public sectors,” the official said. agency in a press release.
The upgrade raised Greece’s rating from BB, while S&P set its outlook for the country to stable, citing “our expectation that Greece’s fiscal buffers and proven political effectiveness will allow the country to absorb the indirect impact of the war in Ukraine on its economy and its public”. finance.”
Russia’s invasion of its neighbor “is the main driver of our projection that Greek GDP growth will slow to 3.4% in 2022 from 8.3% last year,” the agency said, ” despite low direct exposure to exports to Russia, large buffers of household savings” and Athens’ decides to buy natural gas from other countries.
The country is also struggling with high inflation, but S&P said wages have not risen accordingly and price growth will start to decline by September.
The agency also noted that fiscal and monetary support from the European Union had boosted Greece’s economy and governance, and predicted that the country’s debt-to-GDP ratio would decline through 2025 as its economy would grow and its expenses would decrease.
Published in The Express Tribune, April 24and2022.
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