The recovery of the investment grade in 2023 is looming on the horizon, even if it is still too early for safe conclusions. The achievement of an almost balanced budget in 2022 also works in this direction. The initial estimates spoke of a primary deficit of 1.6%, however it seems that the better course of the budget – due to inflation which brought much more revenue to the state but not to citizens – leads to an almost zero deficit last year, something that the political leadership of the Ministry of Finance has also mentioned.
It is worth noting that Eurostat will announce on April 24 the final figures of the Greek economy for 2022, both for the final percentage of growth and the deficit. It is worth noting that inflation and rising prices have played a particularly negative role in citizens’ incomes, however they have worked positively for the country’s fiscal figures, in terms of tax revenues, GDP and public debt (as a percentage of GDP) . In the event that the data is positive, then it is considered that another step will have been taken in the direction of the investment grade.
In the event that the last installment of 740 million euros from the Greek bonds is recorded in last year’s fiscal year, then the cash balance is revised for the better, with the result that the 2022 budget closes with a primary surplus against a forecast for a primary deficit of 1.6% of GDP. Such a development makes this year’s target for a general government surplus of 0.7% of GDP easier.
Financial benefit
One of the main questions is what such a result will contribute to the Greek economy. Officials of the economic staff of the government speak of an annual fiscal benefit of the order of 1 billion euros, while at the same time they expect the Greek public borrowing rates to be pushed down, limiting the cost of money for Greece, in a period of an upward cycle of interest rates not only of the euro, but of all strong currencies around the world. Regarding the cost of borrowing for the state, market players estimate that once the investment grade is recovered, initially, there will be a reduction in the spread of the 10-year Greek bond, despite the general climate of an increase in the cost of money, due to high inflation and of interest rates from the ECB.
Rating Agencies
At the same time, the perspective of the rating agency Standard & Poor’s on April 21 is awaited with particular interest, as it seems that it will be a forerunner for what will follow in the coming months, in the direction of upgrading the Greek debt. However, the main instrument for the upgrading of the Greek economy to investment grade by the rating agencies is the agreement on the primary surpluses of the following years, a discussion that takes place at a second level, however the final agreement has not yet been concluded with the Institutions. Many analysts consider that the investment grade is of great importance, especially in a phase of upcoming tightening of fiscal rules in the eurozone, with all that this implies for the benefit programs of European countries and indeed at a time when international economic developments are turning to the worst , as the IMF recently warned.
στο Google News και μάθετε πρώτοι όλες τις ειδήσειςLatest News
Vardis Vardinogiannis: ‘On a Ship’s Bridge You Always Look Forward’
Ten milestones in the half century since the creation of Motor Oil Group, as described by Vardis Vardinogiannis, who passed away on Tuesday at the age of 91
DBRS Says Greek Banks ‘Shielded’ from ECB Rate Cuts
The agency explains that fund disbursements through the banking sector will help offset pressures anticipated on interest margins beginning in 2025, due to expected rate cuts by the European Central Bank (ECB).
Meta Cuts Facebook and Instagram Subscription Fees by 40%
The social media giant also revealed that it will continue to offer free access to Facebook and Instagram for EU users, provided they agree to see ads based on a limited set of user data.
Skyrocketing Use of Debit, Credit Cards
The total value of the transactions conducted with debit and credit cards in the country in the first half of 2024 rose 2% on the corresponding period of 2023
JP Morgan Revised Greece Outlook to ‘Overweight’
The investment bank notes that Greece is showing the strongest GDP growth in the Eurozone. Additionally, efforts to clear up bank balance sheets are anticipated to yield increased capital returns.
Vardis I. Vardinogiannis, Greek Tycoon and Shipping Magnate, Dies at 91
In 1990, Vardinogiannis was targeted in an attack which involved three rockets fired at his vehicle by the terrorist organization 17 November.
Kudos for Greek Sheep’s Milk Cheeses
Graviera is the Greek version of the Swiss gruyère, and is generally considered the second most popular cheese made in the country after feta
EIB Survey: Greeks Rank Climate Change as Top Concern After Cost of Living
Specifically, 98% of the Greeks surveyed stated that the country must to adapt to climate change, with 60% saying that priority should be given to these adjustment measures
Trump Tells Putin not to Escalate Ukraine War during Phone Convo
Meanwhile, President Joe Biden, is preparing to lobby Trump against abandoning U.S. support for Kyiv
Former Thessaloniki Mayor Yiannis Boutaris Dies at 82
Boutaris entered politics in 2010, serving as the 60th mayor of Thessaloniki for two consecutive terms until 2019, becoming a transformative figure with his progressive policies.
