In its statement, Fitch highlighted that Greece’s rating reflects its higher-than-average per capita income and governance indicators for a BBB- rated country. Additionally, the country’s policy credibility is bolstered by its membership in the EU and the Eurozone.
“These strengths are counterbalanced by the lingering effects of the sovereign debt crisis, including high levels of public and external debt, elevated but declining unemployment rates, low medium-term growth potential, and ongoing weaknesses in the banking sector,” the agency noted.
Fitch forecasts that Greece’s overall general government deficit will decrease to 0.8% of GDP by 2025, with primary surpluses averaging 2.3% in 2024-2025, up from 1.9% in 2023. “Recent performance was boosted by stronger-than-expected revenue receipts and effective cost containment,” Fitch added.
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