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On a positive basis, S & P improved S & P's outlook, announcing a new move in the next 12 months
It is recalled that the house had improved Greece's B + rating there is a month.
S & P stresses that the positive outlook has been put forward because of the improved predictability of the policies implemented, following the agreement within the Eurogroup, but also because of the improved economic outlook.
As it is said, primary surpluses were recorded in 2016 and 2017, while a multi-year recession was completed in 2017. The key factor in the long-term sustainability of Greek debt will be development aid policies and not additional tax measures.
The company expects growth over the next three years 2.5% while emphasizing that it is not possible to exclude a rate still higher if the government improves the business environment, attracting more foreign investment.
S & P notes that projected increases in public spending for major transportation infrastructure projects, including ports and airports, can help stimulate growth by mobilizing investment in the most competitive sectors of countries such as tourism, shipping and logistics. At the same time, industries such as pharmaceutical and food companies are increasingly focusing on exports.
However, the company indicates in the longer term that it can hope to consistently exceed growth rates above 3%, due to administrative burdens and a non-competitive culture in the economy mainly in the service sector.
As the positive outlook reflects the possibility of upgrading if the government implements the necessary reforms to improve the economic environment and broaden the tax base, laying the foundation for more
The improvement of the banking sector could be a catalyst for upgrading, with a remarkable reduction in nonperforming loans, coupled with lifting capital controls that would allow for trapping.
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