After more than a decade of financial struggles, Greece has officially regained Investment-grade Status—a significant milestone in its economic recovery. This upgrade marks the country’s return to financial stability and signals renewed investor confidence in Greece’s long-term growth prospects. It reflects years of economic reforms, improved fiscal policies, and strengthened financial institutions, reinforcing Greece’s position as an attractive destination for investment.
A Historic Upgrade for Greece
For the first time since the Greek financial crisis, a credit rating agency has raised Greece’s credit rating to investment grade, following similar moves by other major international credit rating agencies. This shift underscores the country’s improved fiscal discipline, a more resilient banking sector, and the successful implementation of key economic reforms. These factors have collectively fuelled optimism about Greece’s economic stability and future growth.
Key Drivers Behind the Upgrade
Greece’s economic transformation has been driven by several critical factors:
- Stronger Public Finances: The government has achieved faster-than-expected fiscal improvements, posting substantial primary surpluses that help reduce the country’s debt burden.
- Resilient Banking Sector: Greece’s financial institutions have strengthened significantly, reducing risks linked to potential credit events.
- Ongoing Structural Reforms: While challenges remain, the government has demonstrated a firm commitment to fiscal discipline and tax compliance, improving the overall economic environment.
Greece’s Debt Outlook: A Positive Shift
Greece’s debt-to-GDP ratio, which peaked in 2020, has been steadily declining. In 2024, it stood at 156.1%, with projections showing a further drop to 148.3% in 2025 and 140.6% in 2026. This downward trend enhances investor confidence and reinforces Greece’s fiscal stability.
Additionally, the government has made substantial progress in repaying crisis-era debt. In 2024 alone, Greece prepaid €7.9 billion, with plans for another €5 billion early repayment in 2025. These actions further solidify the country’s economic foundation and reduce its financial risk profile.
What’s Next for Greece?
The credit rating upgrade marks the end of a turbulent economic era and the beginning of a new phase of stability and growth. As former Finance Minister Kostis Hatzidakis stated, the upgrade “marks the end of a major cycle” and reaffirms Greece’s return to European economic normality after years of uncertainty.
Moving forward, the Greek government remains committed to:
- Implementing further structural reforms
- Reducing tax burdens
- Driving economic growth initiatives
- Leveraging the Recovery and Resilience Fund to support long-term development
A Bright Future for Greece
Despite lingering economic challenges, Greece’s outlook is more positive than it has been in years. The investment-grade upgrade is a clear indicator of the country’s recovery and growing financial stability.
For investors, businesses, and institutions, this is a moment of opportunity. As Greece continues on its path to greater fiscal health and resilience, the country is once again positioned as a strong player in the global economy.
