Fitch has affirmed Greece’s credit rating at BB+ with a stable outlook. This means that Greece continues to be one notch below investment grade.

Greece’s ranking is supported by structural indicators, including governance scores, human development indicators and GDP per capita, which are among the highest sub-investment indicators. These benefits have been created despite the legacy of the sovereign debt crisis, which includes high levels of public and external debt, as well as low medium-term growth potential and banking sector vulnerabilities.

On the growth outlook, Fitch has revised down its GDP growth forecast to 2.3% in 2023 (from 0.9%), partly on lower energy risks. He still expects household consumption to slow significantly this year, reflecting the impact of inflation and reduced demand for loans. Conversely, investment growth will remain robust thanks to the absorption of funds under the Recovery and Resilience Fund (RRF), while sectors such as tourism will continue to support exports.