Korkidis: The economy will judge the elections and the elections the economy

By | May 14, 2023

Until the end of the year there are six critical “appointments” with the rating agencies, from which it will be decided whether the Greek economy finally regains its investment grade, underlines the president of the Piraeus Chamber of Commerce and Industry, Vassilis Korkidis.

In more detail, he notes: “The Greek economy has gone through 40 waves in the last 13 years. However, since 2019, the economy of our well-governed country has performed exceptionally while growth is moving at high levels.” , despite the adverse economic conditions due to the pandemic and the energy crisis, a development that is in our hands to continue in the coming years and that will be reflected with greater dynamism in the income and living standards of all citizens. However, political and economic stability is a prerequisite, as is maintaining the credibility of the Greek economy abroad, and those who can certify the reliability of the Greek economy abroad are the International Assessment Houses. Greek economy, ranking it literally “half a step” short of the coveted investment grade.

Greece has a unique opportunity to fully regain its credibility and prestige in the face of international markets and foreign investors after many years of being in the junk category. After a decade in which investors had essentially left the Greek market on the sidelines, the last 4 years of the ND government have seen a significant increase in foreign investment in our country. For this reason and many others, maintaining the upward trend of the Greek economy and society must be a national objective. An objective that we must not miss. By recovering investment grade, our country will be able to access international markets and borrow at more favorable interest rates. The banks will be able to do the same, which will borrow more cheaply, so that they can grant more loans and with more favorable conditions to households and companies.

Our economy is recovering its competitiveness with effort and sacrifice, at a time when the world economy has been severely shaken by the prolonged energy crisis. However, as can be seen from the recent evaluations of the international Houses, the outcome of the upcoming elections will play a catalytic role. In fact, as everything shows, they have focused on the government’s economic announcements, to determine if it is committed to continuing the reforms, reducing the public debt, maintaining growth at 2.5%. The factors they take into account are structural, macroeconomic and fiscal. As long as there are uncertainties about the future of the economy, the acquisition of investment grade will be delayed. Consequently, if these conditions are met, it is expected that the investment grade that will symbolically close the cycle of the debt crisis, after at least 13 years of insecurity, will arrive for our country, as international analysts point out, in the last four years. months of 2023. Three rating agencies DBRS, Standard and Poor’s and Fitch rate Greece just one notch below investment grade. It should be noted that according to ELSTAT data for April, inflation decreased to 3%, from 12.2% a year ago.

Korkidis: “Until the end of the year there are six more critical ‘appointments’ left with the rating agencies”

“Until the end of the year, there are six more critical “appointments” with the rating agencies, from which it will also be decided whether the Greek economy finally recovers its investment grade. International analysts with today’s data estimate October as the most probable for Greece’s upgrade to investment grade. In any case, to achieve this, fiscal discipline must be maintained. As I have mentioned, the Greek economy and society cannot bear any more experimentation. Safeguarding the improvement of the economic life of the Greeks is the biggest bet of the elections. Therefore, seriously, with vision and discipline, the continuous and sustainable development of the economy must be ensured, through which better incomes will be ensured for both workers and the self-employed. The government’s economic agenda is closer to small and medium-sized businesses and the needs of households and businesses. It is a realistic program that can guarantee the improvement of the Greek economy and the quality of life of the Greeks. As it seems, the economy is what will judge the winner of the elections and the winner the prospects of the economy. Let’s see!” says Mr. Korkidis.

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