S&P has affirmed Greece’s rating at BB+ (one notch below investment grade), while raising its outlook from stable to positive.

“The positive outlook reflects our view that Greece will build on its recent successful track record of implementing structural reforms. In addition, the government closed the budget deficit faster than expected through improvements that we consider broadly sustainable,” the House of Representatives said.

It is noted that the BB+ rating is one notch below investment grade.

The House of Representatives notes that Greece’s structural reforms and the resilience of its economy, combined with EU support, have improved public finances and financial stability.

After the fastest fiscal consolidation in the EU in 2022, Greece’s general government primary balance has returned to surplus, and in this environment, the House of Representatives expects further fiscal improvements in the coming years.

In terms of investment, S&P notes that it has grown to 21% of GDP by the end of 2022, up 9 percentage points from the past three years. The House of Representatives believes that this development trend will continue thanks to the 30.5 billion euros of the EU Recovery and Resilience Fund (RRF) available to Greece.

Staikouras: Half a step to the investment stage

“Standard & Poor’s rating agency today continued to improve the prospect of upgrading the rating of the Greek economy (forecast) from “stable” to “positive”. Thus, it becomes the second international rating agency, which in 2023 puts the country on the floor of the “ladder” to investment grade “, – said the Minister of Finance.

He added: “This is another very positive development following the 12 expansions of the Greek economy over the past 4 years or so, despite successive external crises.

An evolution that is the fruit – and at the same time evidence – of responsible, efficient and socially just government economic policies, a far-sighted publishing strategy, maintaining cash reserves at a safe level, and implementing significant structural changes that lead the country forward.

In continuation of the official statistics that were released today and confirm that Greece has achieved the biggest – European – financial improvement in 2022, despite the fact that social support measures were among the most generous in Europe.

In particular, last year our country managed to reduce the primary deficit to zero, even recording a small primary surplus, increase GDP by 26 billion euros and reduce public debt by 23% of GDP. So, it becomes clear that the Greek economy has turned the page. It is steadily moving along the path of fiscal stability and responsibility, providing conditions for continuing the path of dynamic development that the country has entered.

Today’s move by the S&P shows a sharp improvement in confidence and outlook for the Greek economy. It also confirms that if the current prudent and efficient economic policies are continued, the grand national goal of achieving investment grade by 2023 is achievable and realistic.”