The downward trend of Greece’s pubic debt will not lead to the debt’s derailment, and the development of the Greek economy will continue even under external shocks, credit-rating agencies and international organizations said in their published reports in March.
Moody’s, DBRS and Scope confirmed Greece’s investment grade and its outlook despite the unfavorable global environment following a spike in energy and raw material prices caused by the war in the Middle East.
The International Monetary Fund (IMF) also found that Greece is in a good position to manage external shocks, as its public finances continue to be strengthened shown in the fast reduction of the debt ratio to GDP, and fiscal policy’s attention is turning in the right way toward supporting households’ purchasing power and the accessible acquisition of homes.
International credit-rating agencies and the IMF also foresee that progress in tax evasion and the proper management of public expenditures will lead to primary surpluses in coming years as well. Their basic approach is that resolving long-standing structural problems – such as the low employment rate and the low rise in productivity – will require time. In its recommendations, the IMF mentions boosting digital transition in the private sector, further reducing regulatory and administrative burdens to strengthen business development and productivity, improving incentives for work and targeted policies in the labor market, and adult learning programs.
Source: ANA – MPA