A difficult week, amid geopolitical tensions and increased uncertainty about the future of the global economy, is coming to an end. In Greece, all eyes are turned on Standard & Poor’s (S&P) report on the Greek economy.
Interest is mainly focused on the company’s comments regarding the Greek economy and whether it will proceed with the upgrade of the outlook, which is currently keeping it stable. Such a decision would be particularly positive if one considers that the prospects in other European countries are not particularly auspicious with the risk of downgrades visible for some of them.
The recent remarks of the International Monetary Fund (IMF) on the Greek economy in the context of the spring meeting in Washington were rather important. The visit of Finance Minister Kostis Hatzidakis to the US capital is a first-class opportunity to communicate the state and prospects of the Greek economy in his meetings with the head of the IMF, Kristalina Georgieva, as well as with high-ranking executives of investment and banking groups.
What S&P pointed out in the autumn
It is recalled that S&P upgraded the Greek debt to investment grade (BBB-) last October, citing the steady promotion of reforms and the improvement of the country’s fiscal position. It kept the outlook stable.
In the autumn of 2023, the analysts pointed out that S&P could proceed with an upgrade of the Greek economy if the debt as a percentage of GDP declines further. This, it was emphasized, could happen if strong primary surpluses continue for a long period of time along with reforms that enhance the competitiveness of the economy and the best use of the Recovery Fund funds. In this context, it is considered particularly important to take further steps in terms of reforms, especially those related to the Recovery Fund, in the coming months.
Societe Generale had recently left open the possibility of S&P upgrading the prospects of the Greek economy.
