Moody’s turns view on Greece to positive

Moody's Investors Service said it changed the outlook for the government of Greece to positive from stable and affirmed the local-currency and foreign-currency long-term issuer and LC senior unsecured ratings at Ba3. Moody's also affirmed the foreign-currency senior unsecured shelf and medium-term note program ratings at (P)Ba3.

“The main drivers for the outlook change to positive are prospects of a period of higher nominal GDP growth than in the past decade, partly the result of improvements in governance and effective past economic and banking sector reforms which are more visibly bearing fruit. Together with continued commitment to sound fiscal metrics supported by the implementation of fiscal measures, higher nominal GDP growth will contribute to a marked decline in Greece's debt burden in the next few years,” the agency said in a press release.

Moody’s said it projects Greece’s 2022 fiscal deficit declined to 3.2% of GDP from 7.5% in 2021. For 2023, the agency expects a further improvement in the budget deficit to -1.5% of GDP and a primary surplus of 1.2% of GDP in 2023.

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