Author: Eleftheria Kourtali

Moody’s recently raised Greece’s credit rating outlook to “positive,” despite maintaining a Ba1 rating due to certain factors. The credit profile is influenced by economic power, institutional strength, fiscal health, and vulnerability to event risks. While Greece’s economic power is considered moderate, efforts to diversify the economy and attract investments are crucial for growth. Institutional and governance improvements have been noted, with progress in areas like tax compliance and public administration. Despite a high debt index, Greece has seen a reduction in its debt-to-GDP ratio and aims for further decrease by 2025. However, potential obligations from public sector entities could…

Moody’s recently issued a warning regarding the challenges posed by worsening demographics, specifically the increase in the dependency ratio of the elderly. This trend not only raises fiscal concerns but also has the potential to lead to downgrades in states’ ratings. Greece, in particular, is projected to have the fifth-highest dependency ratio among all developed economies in the next decade. The aging population in developed countries is a growing concern as people are living longer while birth rates decline. This shift is expected to see the elderly dependency ratio rise from 32% to 40% in the next decade, meaning fewer…