Moody's: Crisis is temporary

The crisis from the coronavirus pandemic is expected to constitute no more than a transitional shock for the Greek economy, estimates Moody's, stressing that the country's credit profile continues to be on an improvement course even though this was interrupted by the Covid-19 lockdown.

The rating agency's baseline scenario now provides for the Greek contraction to come to 9.5% this year, against 5% forecast just a month ago, while the 2021 recovery is expected to be strong enough for the economy to rebound 7%.

In a report released on Friday Moody's argued that the government's fiscal response to the pandemic was quite broad and that the Greek economy is less incorporated in global supply chains compared to other eurozone states. A significant risk for Greece would be a second coronavirus outbreak that would lead to the return of restrictions, but the country remains a...

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