BUSINESS

Moody’s report says growth prospects uncertain

TAGS: Economy

In its latest report on Greece, credit rating agency Moody’s says that the country’s low birthrate, along with low investment and savings, casts a pall of uncertainty over economic growth prospects.

On the positive side, it notes that reforms are being accelerated and that the interest paid on debt servicing is low.

Moody’s says that its current credit rating on Greece – B1, four levels below investment grade – reflects Greece’s “moderate” economic power and its higher living standards compared to other countries with the same rating.

Its relatively good performance in legislating reforms is offset by the state’s low effectiveness in combating corruption.

Moody’s was expected to release its new rating on Greece and the credit outlook late on Friday, with the consensus among analysts being that the rating will remain the same, but that the outlook will improve from “stable” to “positive.”

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