Athens, Greece (AP) — Credit rating agency Fitch maintained Greece’s rating at BB, two notches below investment grade, but revised Greece’s outlook from stable to positive.
In a report published Friday, Fitch estimates that the Greek economy grew 8.3% in 2021 while growth was still hit in the previous quarter as a result of the coronavirus pandemic. Waves fueled by a variant of the virus. Prior to that, gross domestic product (GDP) was above pre-pandemic levels.
Greek banks are a major reason for the upgrade, “significantly reducing the level of non-performing loans and strengthening the ability to provide credit to the real economy.”
On the plus side, Fitch expects economic recovery to expand in 2022 and 2023, with GDP increasing by 4.1% each of these years. Heavily indebted poor countries are also scheduled to repay the full amount in 2022 to the International Monetary Fund, one of the creditors.
On the downside, the deficit is declining very slowly, from 10.1% in 2020 to 9.7% of GDP in 2021. € 15.6 billion ($ 17.8 billion, 8.7% of the 2021 GDP forecast). However, by phased out pandemic-related support measures, the deficit can be reduced to 4.1% in 2022 and 2.9% in 2023.
Fitch upgrades Greek credit outlook positively | Health
Source link Fitch upgrades Greek credit outlook positively | Health