Greece sees significant debt reduction and credit upgrades

Fitch Ratings reports that rapid public debt reduction has been the primary catalyst for three credit rating upgrades for Greece, Cyprus, and Portugal since 2022. Greece achieved the most significant absolute reduction, with its debt-to-GDP ratio falling from approximately 209% in 2020 to 146% in 2025, with projections suggesting a further decline to 125% by 2029. This deleveraging was supported by strong economic growth, which saw the Greek economy expand by 22% between 2021 and 2025, outpacing the EU average of 13.5%.

Fitch highlights that while growth was a major factor, sustained fiscal discipline and the generation of primary surpluses distinguished these three nations from Italy and Spain, which saw only single-notch upgrades. Improved banking sector health in Greece and Cyprus also contributed to the removal of rating constraints.

Separately, data from the Bank of Greece shows that the total assets of insurance companies increased by 4.5% in the second quarter of 2026, reaching 22.926 billion euros. This growth was driven largely by increased valuations in mutual funds and stocks, as well as higher valuations of foreign bonds, despite a slight decrease in total deposits.