April 19, 2024

Athens News

News in English from Greece

Fitch Affirms Greece at BB+, Outlook Stable

Fitch has affirmed the country’s credit rating at “positive” with a stable positive outlook.

In a statement, the agency explained that the rating is supported by good governance, human capital development and per capita income, which are among the highest among non-investment grade countries.

These strong structural performances are weighted against the effects of the sovereign debt crisis, which includes large levels of public and external debt, as well as weak medium-term growth prospects and weaknesses in the banking sector.

Fitch revised its GDP growth forecast to 2.3% for 2029 from 0.9% on positive pass-through (1.5 percentage points on much stronger-than-expected performance in 4Q22) and lower energy risks . The report says:

“We continue to expect household consumption to slow significantly this year, reflecting the impact of inflation and declining demand for credit. On the contrary, investment growth will remain strong, supported by the absorption of resources under the Growth and Sustainability Fund, and sectors such as tourism , will continue to support exports.”

The document notes the expectation of the Greek economy growth at the level of 2% to 2.5% in the period 2024-2026, writes CNN Greece.



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