On Friday, S&P upgraded Greece’s rating. But while the economy has been cleaned up, it remains 20% below its 2008 level and the population is still very impoverished.
At the Greek Ministry of Finance, the news was eagerly awaited. On the evening of Friday, October 20, the Standard & Poor’s (S&P) rating agency announced its long-awaited decision: Greece’s rating was upgraded from BB+ to BBB-. A technicality, but highly symbolic: thirteen years after being downgraded to junk bond status, ie the riskiest category, Greece is officially back in the investment grade category. “It’s essentially symbolic,” admitted Secretary General of the Ministry of Finance Georges Christopoulos, “but I don’t think any other country has managed to get back there so quickly.”
After a historic depression during which the Greek economy collapsed by 28%, Athens finally seems to have opened a new chapter. First, there was the crisis (2008-2016), then stabilization (2017-2020), and since emerging from the pandemic, a return to growth. This year, despite inflation which has eroded purchasing power, it is expected to reach 2.5%. As for unemployment, which peaked at 28% in 2013, it has fallen back to 11%.
Giorgia Tabaki was surprised to hear that the Greek economy was now doing better. The professional journey of this woman in her forties with metal-rimmed glasses is indicative of the long impoverishment of Greeks over the last 15 years. In 2008, she was traveling around Greece styling bathroom displays in shops. Thanks to generous commissions on sales, she earned nearly €4,000 a month after taxes.
Source: Le Monde