“The Greek economy has turned a page”, commented Finance Minister Christos Staikouras on the verdict of Standard & Poor’s, as the rating agency proceeded to improve the perspective of upgrading the Greek economy (outlook) to “positive” from “stable”.
Christos Staikouras emphasized that this decision by Standard & Poor’s “demonstrates the drastic improvement of the credibility and prospects of the Greek economy” and noted that “thus, it becomes the second international rating agency, which in 2023, places the country half, just a “stepping stone” before the investment stage”.
At the same time, the Minister of Finance added that “this is another very positive development, which follows the 12 upgrades of the Greek economy in the last 4 years or so, despite successive, exogenous crises.
“Development that is a fruit – and, at the same time, a certification – of the responsible, efficient and socially fair economic policy of the Government, the visionary publishing strategy, the maintenance of cash reserves at safe levels and the implementation of essential structural changes that lead the country forward”.
The Minister of Finance underlined that “it comes, in continuation of the official statistics, announced today and confirming that Greece achieved the largest – pan-European – fiscal improvement in 2022, despite the fact that the support measures for society were among the most generous in Europe.
“Specifically, last year our country managed to reduce the primary deficit to zero, even recording a small primary surplus, increase its GDP by 26 billion euros and reduce its public debt by 23% of GDP.
“So it is clear that the Greek economy has turned the page.
“It is moving, unwaveringly, on the path of fiscal stability and responsibility, ensuring the conditions for the continuation of the dynamic development path that the country has entered.
“Today’s move by S&P demonstrates the drastic improvement in the credibility and prospects of the Greek economy.
“It also confirms that if the current prudent and effective economic policy continues, the great national goal of reaching investment grade within 2023 is absolutely feasible and realistic,” concluded Christos Staikouras.
Standard & Poor’s message is clear
Credit rating agency Standard & Poor’s upgraded Greece’s debt outlook to positive from stable, leaving the debt itself unchanged at ‘BB+’, one step below investment grade.
The verdict of the international house confirmed the assessments that they wanted to wait in view of the elections on May 21, but at the same time it also sends a clear message that Greece is very close to the investment stage and this will happen immediately after the elections under the condition that it does not there will be anarchy.
As reported by Standard & Poor’s, the positive outlook reflects in their position that Greece will rely on its strong “track record” regarding the implementation of structural reforms. In addition, the government closed the budget deficit faster than expected, through improvements that analysts see as generally sustainable.
Standard & Poor’s says it could upgrade Greece’s debt within the next 12 months if fiscal discipline is maintained over its outlook period to 2026. Upgrades will also likely depend on maintaining the pace of structural reforms by the next government, thus strengthening the competitiveness of the Greek economy.
The next chance to regain investment grade comes on June 9th, which is shortly after the May 21st polls and just before the second (if necessary) July 2nd polls.
Then the evaluation by Fitch is scheduled, which also keeps Greece within a breathing distance of “investment grade”.
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**Interview with Finance Minister Christos Staikouras on Greece’s Economic Outlook**
**Editor:** Good afternoon, Minister Staikouras. Thank you for taking the time to speak with us today.
**Minister Staikouras:** Thank you for having me.
**Editor:** Standard & Poor’s has recently revised Greece’s economic outlook from stable to positive. What does this mean for the Greek economy?
**Minister Staikouras:** This change signifies a turning point for the Greek economy. It reflects a drastic improvement in our country’s credibility and future prospects. Being recognized by two international rating agencies in just one year is a remarkable achievement and brings us closer to attaining investment-grade status.
**Editor:** You mentioned that this is the second rating agency to upgrade Greece this year. Can you elaborate on what this means in terms of investor confidence?
**Minister Staikouras:** Absolutely. This demonstrates that Greece is becoming a more attractive destination for investment. Investors tend to seek opportunities in economies that show stability and growth potential. With twelve upgrades over the past four years, despite numerous external challenges, we are creating an environment that fosters investor confidence.
**Editor:** You also highlighted the impressive fiscal statistics from last year, including a primary surplus. How do these figures play into the overall economic strategy moving forward?
**Minister Staikouras:** The fiscal figures reveal a strong commitment to sound economic management. Reducing the primary deficit to zero and achieving a surplus while implementing generous support measures during crises showcases our balanced approach. This strategy will continue to guide us as we aim for sustained economic growth and stability.
**Editor:** What specific policies or reforms have contributed to this positive outlook?
**Minister Staikouras:** Several factors have been vital: responsible and fair economic policy, maintaining healthy cash reserves, and implementing essential structural changes. These efforts have allowed us to not only navigate economic challenges but to thrive and move forward positively.
**Editor:** what do you anticipate for the future of the Greek economy in the coming years?
**Minister Staikouras:** I am optimistic. We are on a path towards fiscal stability and dynamic development. If we maintain our commitment to responsible governance and adapt to changing circumstances, I believe we can continue to enhance our economic standing on the global stage.
**Editor:** Thank you, Minister Staikouras, for sharing your insights. Your optimism is certainly encouraging.
**Minister Staikouras:** Thank you. It’s an exciting time for Greece, and I look forward to what lies ahead.
