- Moody’s upgrades Greece to Baa3, ending 15-year junk status
- Debt-to-GDP ratio projected to drop below 150% in 2024
- Government credits reforms and political stability for progress
- Three EU/IMF bailouts concluded with austerity measures
- New cabinet aims to sustain growth through foreign investment
Greece has achieved a landmark economic milestone as Moody’s became the final major agency to restore its investment-grade rating. Finance Minister Kostis Hatzidakis hailed the Baa3 upgrade as validation of Greece’s return to fiscal normalcy after a decade-long debt crisis that required three international rescue packages. The nation’s debt burden, which peaked at 206% of GDP in 2020, now trends downward due to stringent fiscal controls and improved tax collection systems.
Analysts highlight Greece’s primary budget surpluses—where tax revenues outpace non-interest spending—as critical to its recovery. Unlike Portugal, which prioritized export growth post-bailout, Greece leveraged tourism rebounds and digital infrastructure upgrades. The shipping sector’s 7.5% GDP contribution further stabilized revenues, while EU recovery funds enabled smart farming initiatives in Thessaly, boosting agricultural exports by 12%.
Political continuity under Prime Minister Kyriakos Mitsotakis has reassured markets, though challenges persist. Recent protests over rail safety reforms underscore balancing public sentiment with fiscal discipline. Industry experts note parallels to Ireland’s post-2008 transformation into a tech hub, suggesting Greece could mimic this by incentivizing renewable energy investments. With debt costs now aligned with Italy’s, Athens aims to regain bond market access, potentially lowering borrowing rates by 1.5-2%.
As Hatzidakis passes the finance ministry to Kyriakos Pierrakakis, observers watch for sustained reform momentum. The upgrade coincides with central bank forecasts of 2.3% GDP growth in 2024, fueled by construction and tech sectors. For the Eurozone, Greece’s resurgence alleviates concerns about southern Europe’s stability, setting a precedent for crisis-to-recovery models.
