Greece can achieve a 2.8 percent economic growth rate forecast in its 2020 budget draft if foreign investment activity picks up, says Kathrin Muehlbronner, Senior Vice President at Moody's Investors Service, in comments to Business Daily on Wednesday.
The credit rating agency, however, has a "somewhat lower" growth forecast for Greece's economy next year, at 2.5 percent, adds Muehlbronner.
"A lot will depend on investments and if foreign investment in particular, accelerates – on the back of stronger confidence and the sale of state assets – a higher growth rate similar to the government forecast is eminently achievable," she says.
"As far as the fiscal target is concerned we note positively that the government presented a plan that is compatible with the commitments given to the euro area creditors in the form of a primary surplus of 3.5 percent of GDP. From our perspective maintaining good relations with the creditors is important,“ adds Muehlbronner.
Moody's currently has a B1 rating on Greece with a stable outlook, indicating that no immediate upgrade of the country's debt is on the cards. The B1 rating is four levels below investment grade.
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