Greece has displayed strong recovery from this severe Covid-19 crisis, which hit the economy especially hard given economic dependence upon tourism and travel services.
Greece has displayed strong recovery from this severe Covid-19 crisis, which hit the economy especially hard given economic dependence upon tourism and travel services.
Notwithstanding the significant progress achieved recently, the asset quality of the major Greek banks continues to be relatively weak when compared to the European average.
Our views on the Greek banking sector remain positive and we should expect rating upgrades from low levels in the near term.
We expect that the Greek economy will expand by 6.0% in 2021, and there may be some upside to that forecast as annual GDP growth in real terms was 7.2% in the first half of the year.
Moody’s currently has a positive rating outlook for the four largest systemic Greek banks, in expectation of further improvements in their asset quality and underlying solvency.
We’ve seen a stronger-than-expected economic rebound throughout 2021, and think that the Greek economy will grow by around 6% to 6.5% in 2021 and about 4% to 4.5% in 2022.
Despite raising our sovereign ratings on Greece in April 2021, we continue to view the financial system as an outlier in the eurozone.
We currently expect a strong rebound of 7.2% in 2021 and about 5% and 4.4.% respectively in 2022 and 2023. Over the next three years, we expect Greece’s economic growth will surpass the eurozone average, including in real GDP per capita terms.
2021 was a milestone year for the Greek economy as it largely managed to repair the damage inflicted on the country’s gross domestic product by the coronavirus pandemic.
Looking ahead for Greece, the Recovery and Resilience Facility and the Multiannual Financial Framework will be a main driver of growth.