Fitch Ratings upgrades Greece's economic outlook to positive-Xinhua

Fitch Ratings upgrades Greece's economic outlook to positive

Source: Xinhua| 2022-01-15 15:53:44|Editor: huaxia

ATHENS, Jan. 15 (Xinhua) -- Fitch Ratings has revised Greece's economic outlook from "Stable" to "Positive" and affirmed its rating of "BB" on Friday, while also raising its estimate for the country's economic growth in 2021 to 8.3 percent.

This means that Greece's rating remains two notches below investment grade. Fitch's next scheduled report on Greece will be on July 8.

The rating agency said that "economic activity in Greece has recovered at a faster pace than Fitch expected at the time of the previous rating review in July 2021," when it forecast growth at 4.3 percent.

The strong expansion rate is expected to continue in the next two years, Fitch estimated. "We expect the recovery in economic activity to continue in 2022 ... and for the economy to expand by a further 4.1 percent, with a similar growth rate forecast for 2023."

The agency further commented that the "stronger than expected economic growth and a reduction in the government deficit driven by a substantial reduction in pandemic-related support will support a decline in government debt as a share of GDP."

It saw a debt ratio at 198.4 percent in 2021, against 206.3 percent in 2020, and declining further to 190.3 percent this year and to 185.3 percent by end-2023.

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