January 31, 2023

Athens News

News in English from Greece

Standard & Poor’s: Greece rating remains BB+

Rating agency Standard & Poor’s has confirmed the credit rating of Greece BB +, leaving it unchanged.

S&P notes a stable outlook, reflecting expectations that fiscal cushions and the effectiveness of Greece’s policy will enable it to absorb the economic consequences of the war in Ukraine.

The BB+ level is one notch lower than the investment level, on April 22 of this year it was upgraded from BB due to improved economic management.

Ratings agency S&P said in a note that despite strong performance in 2022, it expects Greece’s economic growth to slow to below 2% in 2023 next, “and possible further energy disruptions in Europe will cloud the outlook.”

The report also notes that annual inflation is expected to ease from its multi-decade high hit in September as wages rise marginally (by 0.9% year-on-year in the second quarter of 2022) and demand declines.

Despite government stimulus measures to protect the economy from the impact of soaring energy and food prices, the 2022 budget deficit is expected to narrow to 4% of GDP this year and even more in 2023, leading to a reduction in the public debt share in GDP, writes CNN Greece.

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