Two reports from Moody’s and Goldman Sachs have lauded the prospects for the Greek economy. Moody’s predicts that the general government debt will fall below 150% of GDP by 2025, thanks to higher nominal GDP growth expected in the coming years. The focus on improving the business environment and banking sector, along with the implementation of reforms under a national recovery plan, will support economic growth, according to Moody’s. The agency also highlights Greece’s strong recovery after the pandemic, with real GDP growth of 5.9% in 2022 and 8.4% in 2021, following a 9% decline in 2020.

Moody’s notes that the recent election results increase the likelihood of New Democracy forming a government, ensuring continuity in fiscal and economic policy, which is seen as credit positive for Greece’s rating.

Greek Prime Minister Kyriakos Mitsotakis emphasized his focus on achieving higher economic growth rates, reducing inequalities, and increasing wages in an interview. He also stressed the significance of Greece regaining its investment grade with a strong government post-elections.

Goldman Sachs highlights Greece’s remarkable economic revival and its close proximity to regaining investment grade status after more than 12 years. The economy is growing nearly three percentage points above the expected pace of growth in the euro area. Additionally, Greece’s inflation is decreasing faster than its peers. Overall, Greece’s economic performance is viewed as robust, with expectations of sustained growth.

The positive assessments from both Moody’s and Goldman Sachs reflect optimism about Greece’s economic prospects, driven by ongoing reforms, strong recovery from the pandemic, and the potential for regaining investment grade status.