Overwhelmed by a political and economic crisis, Greece used to dominate the headlines in the good old times. The Balkan country was bogged down in a debt crisis, record high unemployment, regular civil unrest, feuds in the parliament, etc. On top of that, the strong likelihood of Greece’s leaving the EU or Grexit hung over the eurozone like the sword of Damocles. Having accepted a few bailout loans from the EU and the IMF, Greece took a back seat. The Greek government embarked on a path of reforms.
The issue of Greece’s recovery after the protracted crisis came under the spotlight ahead of the snap parliamentary elections that were held on June 25. Fighting for the majority in the Hellenic parliament, the right-center New Democracy party vowed to guide Greece away from the crisis. Party leader Kyriakos Mitsotakis pledged to improve Greece’s sovereign credit rating. Once this condition is fulfiled, citizens will immediately spot the green shoots of recovery. Analysts at Financial Times suppose that Greece’s credit rating might be upgraded to the investment level (BBB) and higher by the year end.
In late January 2023, Fitch Ratings acknowledged Greece’s long-term credit rating at BB+ with a stable outlook. The victory of the New Democracy party was a widely expected outcome. Markets welcomed the optimistic outlook as Greek bonds have been extending their growth in the last few weeks.
The ruling party has been implementing progressive reforms since it came to power in 2019. For instance, the government seeks ways to relax the tax burden and provide stimulus for private businesses. Eventually, Greece managed to restructure its debts, expand exports, and level off its trade balance.
