Results of the general election in Greece on Sunday, punctuated by New Democracy (ND) party’s landslide victory, points to continued political stability in the country and implementation of reforms that boost economic growth, which pave the way for credit upgrades, DBRS Morningstar assessed on Tuesday.
In a report released after Sunday’s results, DBRS focused on the first-past-the-post showing by center-right ND, led by incumbent premier Kyriakos Mitsotakis, and its unexpectedly strong 40.8 percent showing.
“If New Democracy manages to keep its share of votes (in a second election next month), combined with the same high share of parties not reaching the 3-percent threshold, the outcome of a second election could result in a strong outright majority for ND. This will bring another period of political stability for Greece. ND’s potential win would give it a mandate to continue with the implementation of reforms and investments, increasing Greece’s growth prospects. Improved growth prospects from the expected €30.5bn Recovery and Resilience Fund (RRF) expenditures for reforms and investments, is a contributing factor to potential credit improvements in DBRS Morningstar’s rating for the Hellenic Republic of BB (high) with a Stable trend,” DBRS stated.
The international credit rating firm added that:
— The election result gives a significant lead to ND.
— ND’s potential achievement of an outright majority in an expected second election in the weeks ahead would bring political stability and give government a mandate to continue with the implementation of reforms.
— We view reforms and investments that increase Greece’s growth prospects as strong contributing factors to Greece’s credit rating.
“Greece’s election result signals policy continuity and a continued reform path that could raise economic growth,” according to Nichola James, Co-Head of Global Sovereign Ratings. “Despite persistent global economic challenges, investment growth in Greece could even exceed expectations this year”.
στο Google News και μάθετε πρώτοι όλες τις ειδήσειςLatest News
Iran Activates Air Defense System- Reports of Attack by Israel
An Iranian official said explosions reported by Iran's media were the result of the activation of the country's air defense system, yet media reports attribute them to a drone attack by Israel
Poll: Greeks, EU Citizens Eager to Vote in European Elections
EU citizens are eager to vote in the upcoming elections for the European Parliament in June, with eight in 10 saying the current geopolitical situation makes voting imperative
Mitsotakis-Erdogan Meeting in Ankara Fixed for May 13
The Greek PM himself made the announcement from Brussels on Thursday, while he also responded to a question on Athens' intent to create a marine park in the central Aegean, an environmental initiative
Greece Aims to Boost Energy Capacity, Economy with Offshore Wind Farms
Greece’s Energy Ministry is pushing legislation to accelerate the construction of the first floating wind farms in Greek seas
Reuters: Greek Economy Surges After Decade of Pain
Nevertheless, the article also highlights some of the challenges facing the country, with a falling birthrate and labor shortages posing a threat to the long-term outlook
IMF: Greek Growth in 2024 at 2%; Debt to Ease to 158.8% of GDP This Year
Projected consumer prices are forecast to rise by 2.7%
Major Increase in Russian Natgas Imports by Greece in 1Q 2024
Russian state natgas exporter Gazprom dominated imports to the country, mostly through the overland pipeline entering via a northern frontier pipeline
Lamda Development Announces First Profitable Year for The Ellinikon Project
The ATHEX-listed developer reported 206 million euros in EBITDA for FY23, a 69%-percent increase from 2022 results
Europa Nostra Adds Sifnos, Serifos, Folegandros to Most Endangered List
Europa Nostra says three Greek islands are at risk due to surge in tourism development and rampant construction
EU Cracks Down on Social Media Influencers Making Illegal Profits
A recent EU inquiry uncovered 358 online influencers, among them 20 in Greece, found to be violating consumer laws
