By Natasa Stasinou 

 

DBRS upgraded Greece's credit rating to investment grade status. The rating agency has upgraded the Greek debt to BBB (low) from BB (high), an investment grade status. The trends on all ratings remain stable.

 

This decision follows the decisions taken by two rating agencies, Scope and the Japanese R&I, which have already given investment grade status to Greece.

 

“Despite the challenging economic conditions in 2022, the Greek economy showed resilience, growing by 5.9% with also ongoing improvements in the labour market, supported by strong private consumption and investment and a rebound in the tourism sector,” DBRS said in a statement.

 

“The upgrade reflects DBRS ‘view that, in line with Greece’s impressive track record, the Greek authorities will remain committed to fiscal responsibility, ensuring that the public debt ratio stays on a downward trend,” it added.

 

Greece is expected to meet the growth targets in 2023, as the Greek economy grew by 2.7% in the second quarter of 2023, i.e. exactly as much as the annual target for this year.

 

According to the Hellenic Statistical Authority, the Greek economy grew by 2.7% in the second quarter of 2023 compared with the same period last year, and by 1.3% in comparison with the first quarter of 2023.

 

Consumption and tourism will significantly affect growth, while the international price of oil, as well as energy products, are once again emerging as critical factors. Lower prices in the second quarter weighed on product imports and this contributed to a growth rate of 2.7% in real terms in the April-June period.

 

Based on available seasonally adjusted data, Gross Domestic Product (GDP) in volume terms in the second quarter of 2023 showed an increase of 1.3% compared to the first quarter of 2023, while compared to the second quarter of 2022 it showed an increase of 2.7%. On a non-seasonally adjusted basis, Gross Domestic Product (GDP) in volume terms in the second quarter of 2023 increased by 2.9% compared to the second quarter of 2022.

 

Therefore, the achievement of the two main goals for this year is considered feasible:

 

1. A 2.3% increase in real GDP. This will also determine, among other things, the pension increase as of 1/1/2024. At the moment, the increase is seen close to 3%-3.5%.

 

2. An increase of the nominal GDP to 220 billion euros, so that the ratio of debt to GDP decreases to close to 162%. The nominal GDP of the first semester already amounts to 110 billion euros.