Greece, fiscal performance above expectations. Moody's confirms the country's sovereign rating
Financial rating agency Moody's has confirmed Greece's sovereign rating at “Baa3”, with a stable outlook, citing the country's better-than-expected fiscal performance and solid macroeconomic fundamentals, public television station ERT reported.
Greece's credit profile reflects credible reforms, improved governance and a more viable banking system that supports investment and economic resilience, according to Moody's statement, according to Agerpres.
Since the pandemic, Greece's fiscal performance has significantly exceeded expectations, with the country registering a primary budget surplus of 4.7% of GDP in 2024, and for last year the surplus is forecast at 4.4% of GDP.
And the level of public debt as a percentage of GDP fell to approximately 154% in 2024 and would be at 148% at the end of 2025, the lowest level since 2010, the financial evaluation agency informed.
Despite the improvements, Moody's warns that Greece's debt burden remains high, although the favorable debt structure and high cash reserves help mitigate risks.
Analysts expect Greece's GDP to grow faster in 2026, outpacing major European economies, on the back of higher investment and higher consumer spending.
Data published this week by the National Statistics Office (Elstat) show that the Greek economy grew by 2.1% in 2025, a level similar to that of 2024, and below the level of 2.2% forecast by the authorities in Athens.
Consumption remained the growth engine of the Hellenic Republic's GDP, while investment accelerated in the fourth quarter of 2025.
The Greek economy continues to register a faster growth rate compared to the European Union (1.5%) and the euro zone (1.4%), according to data published by Eurostat. Based on these data, only seven eurozone member states have a higher annual growth rate than Greece, including Bulgaria and Croatia.
For this year, the 2026 budget foresees an expansion of 2.4%, thanks to the impetus of the tax reform, which would increase incomes, especially in the case of young people, families with children and the middle class. In 2028 and 2029, a slowdown in growth is expected.
