S&P Global Ratings does not expect significant changes in the credit ratings of European countries for 2022, citing the 23 “stable” outlooks in the developed European economies, with Greece, however, remaining on a path for an upward revision “if the structural reforms continue in combination “with strong economic recovery and improved budget performance,” he said.
In a report released today, the house notes that out of the 30 European countries and regions that have a credit rating, the outlook at 23 is “stable”. At the same time, outlooks in Greece, Cyprus, Italy, Andorra and Estonia are “positive”, while in Guernsey and Spain they are “negative”.
The positive outlook for Greece shows that “we could revise the rating upwards in the next 6 to 12 months if the economic recovery is faster than we anticipate today and stronger than in other European economies. The upward trend may also depend on “a substantial improvement in budget execution combined with a significant reduction in non-performing loans in the Greek banking system,” he said.
At the same time, he notes that the Greek economy has undergone significant structural reforms in the last decade and will benefit significantly from the resources of the NextGenerationEU (NGEU) recovery plan. Greece is expected to receive grants of € 17.8 billion (approximately 10% of 2021 GDP) by 2026 and loans of € 12.7 billion (7% of GDP).
These resources will support the country’s green transition, the digitization process and labor market and public administration reforms. “If used effectively, we believe that these funds could accelerate structural improvements in the economy, contribute to stronger growth and benefit the evolution of the balance of payments in the period 2021-2026,” he said.
The house estimates GDP growth of 7.2% in 2021 and 5% in 2022, with a slowdown to 4.4% and 4.1% in 2023 and 2024. Debt is expected to decline from 178.7% of GDP in 2021 at 171.3% in 2022, 161.8% in 2023 and 152.1% in 2024.
Overall for Europe, it says that in nominal terms, most European economies have recovered to at least 2019 levels. by 4.4% this year, following an estimated 5.1% recovery in 2021.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
