Moody’s has once again praised Greece for its swift reduction in debt levels,
Moody’s has once again praised Greece for its swift reduction in debt levels, forecasting that this trend will continue into 2026. In its Global Sovereign Outlook 2026, the ratings agency projects that Greek debt will fall by more than four percentage points, a reflection of prudent fiscal management.
The agency notes that most countries projected to cut debt in 2026 have lower credit ratings, with Greece (Baa3) standing out as an exception. Cyprus (A3 – stable) and Ireland are also expected to improve their debt metrics, reflecting a decade of significant reforms, though at a slower pace than in previous years.
Global Challenges Weigh on Fiscal Recovery
Despite stable growth and moderate inflation, Moody’s warns that U.S. policy uncertainty (Aa1 – stable) and geopolitical tensions are limiting fiscal recovery. High debt and rigid fiscal rules constrain policy effectiveness, while political polarization and social unrest force governments to focus on immediate issues, dampening investment, consumption, and consensus-building.
Steady but Slower Global Growth
Moody’s notes that the global economy remains resilient despite high uncertainty, though growth remains below pre-pandemic levels, limiting prospects for a strong fiscal rebound. In 2026, trade tariffs are expected to more visibly affect supply chains and global investment, while modest GDP
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