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Morningstar DBRS Affirms Greece’s Stable Credit Profile Amid Robust Economic Growth

Stable Ratings Backed by Credible Policy Framework

The rating agency Morningstar DBRS has confirmed Greece’s long-term issuer ratings at BBB for both foreign and local currency debt, while also affirming the country’s short-term issuer ratings at R-2 (high). All ratings maintain a stable outlook, reflecting a balance in short-term credit risks.

Strong Economic Performance Driving Optimism

The agency’s report highlights Greece’s impressive economic performance, noting a 2.3 percent growth in 2024—well above the euro area average of 0.9 percent. This robust domestic demand, underpinned by employment gains and EU-funded investments, has been the key driver of GDP expansion. The European Commission forecasts similar growth for 2025, reinforcing a positive economic outlook.

Fiscal Discipline And Structural Reforms Strengthening Confidence

Greece’s steady economic progress has been complemented by recurring primary budget surpluses and a consistent decline in its debt-to-GDP ratio, with projections suggesting a drop from 164 percent in 2023 to 141 percent by 2026. Morningstar DBRS attributes the BBB ratings to Greece’s credible policy framework, membership in the European Union, and commitment to reforms that bolster governance, improve the business environment, and enhance debt sustainability.

External Risks And Future Considerations

Despite these positives, the agency cautions that Greece remains exposed to external risks common across EU economies. Any shift in the geopolitical or global trade environment that dampens external demand could impact exports and the broader economic landscape. An upgrade in credit ratings may be achieved with further reductions in the public debt ratio and sustained primary surpluses, while any prolonged fiscal weakness or reversal of reforms could lead to a downgrade.

Outlook For Long-Term Fiscal Sustainability

Looking ahead, the International Monetary Fund projects that Greece’s primary budget surplus will average 2.4 percent of GDP through the end of the decade, with public debt expected to fall to 125 percent of GDP by 2030. However, the ratings remain constrained by the country’s high public debt, small economic size, and sizable current account deficit. A prudent fiscal approach and ongoing economic reforms will be crucial to ensuring Greece’s sustained creditworthiness.

Cyprus Income Distribution 2024: An In-Depth Breakdown of Economic Classes

New findings from the Cyprus Statistical Service offer a comprehensive analysis of the nation’s income stratification in 2024. The report, titled Population By Income Class, provides critical insights into the proportions of the population that fall within the middle, upper, and lower income brackets, as well as those at risk of poverty.

Income Distribution Overview

The data for 2024 show that 64.6% of the population falls within the middle income class – a modest increase from 63% in 2011. However, it is noteworthy that the range for this class begins at a comparatively low threshold of €15,501. Meanwhile, 27.8% of the population continues to reside in the lower income bracket (a figure largely unchanged from 27.7% in 2011), with nearly 14.6% of these individuals identified as at risk of poverty. The upper income class accounted for 7.6% of the population, a slight decline from 9.1% in 2011.

Income Brackets And Their Thresholds

According to the report, the median equivalent disposable national income reached €20,666 in 2024. The upper limit of the lower income class was established at €15,500, and the threshold for poverty risk was set at €12,400. The middle income category spans from €15,501 to €41,332, while any household earning over €41,333 is classified in the upper income class. The median equivalents for each group were reported at €12,271 for the lower, €23,517 for the middle, and €51,316 for the upper income classes.

Methodological Insights And Comparative Findings

Employing the methodology recommended by the Organisation for Economic Co-operation and Development (OECD), the report defines the middle income class as households earning between 75% and 200% of the national median income. In contrast, incomes exceeding 200% of the median classify households as upper income, while those earning below 75% fall into the lower income category.

Detailed Findings Across Income Segments

  • Upper Income Class: Comprising 73,055 individuals (7.6% of the population), this group had a median equivalent disposable income of €51,136. Notably, the share of individuals in this category has contracted since 2011.
  • Upper Middle Income Segment: This subgroup includes 112,694 people (11.7% of the population) with a median income of €34,961. Combined with the upper income class, they represent 185,749 individuals.
  • Middle Income Group: Encompassing 30.3% of the population (approximately 294,624 individuals), this segment reports a median disposable income of €24,975.
  • Lower Middle And Lower Income Classes: The lower middle income category includes 22.2% of the population (211,768 individuals) with a median income of €17,800, while the lower income class accounts for 27.8% (267,557 individuals) with a median income of €12,271.

Payment Behaviors And Economic Implications

The report also examines how income levels influence repayment behavior for primary residence loans or rental payments. Historically, households in the lower income class have experienced the greatest delays. In 2024, 27.0% of those in the lower income bracket were late on payments—a significant improvement from 34.6% in 2011. For the middle income class, late payments were observed in 9.9% of cases, down from 21.4% in 2011. Among the upper income class, only 3% experienced delays, compared to 9.9% previously.

This detailed analysis underscores shifts in income distribution and repayment behavior across Cyprus, reflecting broader economic trends that are critical for policymakers and investors to consider as they navigate the evolving financial landscape.

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