Greece sees credit rating upgrade as sign of economic recovery

In Greece, the center-right government celebrated a significant milestone as Moody's, the last major credit ratings agency, upgraded the country's government bonds from junk status. This upgrade from Ba1 to Baa3 marks an end to a 15-year period of financial turmoil that began with a severe debt crisis in 2010. Finance Minister Kostis Hatzidakis welcomed the announcement, emphasizing that it represents a collective success for all Greeks and signals a return to European normality. The upgrade was attributed to rapid improvements in public finances, as well as the government's policies that have fostered stability and growth. Following a string of international bailouts aimed at avoiding bankruptcy, Greece underwent a period of rigorous austerity measures imposed by the European Union and the International Monetary Fund. These measures included substantial cuts in public spending and reforms in tax compliance, contributing to improving economic conditions. Notably, Greece's national debt, which soared above 200% of its GDP in 2020, has been on a declining trend, with projections indicating it may fall below 150% soon. Moody's noted that the government has successfully maintained substantial primary surpluses, which have enabled the mitigation of the country's debt burden effectively. There was a consensus within the agency regarding Greece's continued trajectory towards sound finances, bolstered by favorable economic indicators such as rising tax revenues and a stable political environment, despite the recent unrest stemming from a deadly rail disaster. As Greece rejoices in this latest development, Prime Minister Kyriakos Mitsotakis reaffirmed the commitment to ongoing reforms intended to attract more investments and generate job opportunities for sustainable economic growth. The improvement in credit rating not only signals a renewal of confidence among investors but also represents a pivotal step in Greece's long road to recovery since the devastating crisis, marking a hopeful chapter for its economy.