The DBRS rating agency stated that economic growth in southern European countries can serve as protection against higher public debt costs. This economic and fiscal evolution can reduce the bill to be paid for the respective debts of Portugal, Spain and Greece.
The analysis by DBRS highlights that the favorable economic performance in these countries contributes to improving the sustainability of their public finances. Economic growth allows for generating additional revenue and reducing the relative weight of debt in relation to Gross Domestic Product.
Portugal, Spain and Greece are the countries mentioned as benefiting from this positive dynamic. The economic growth capacity thus becomes a relevant factor in assessing the credit quality of these economies.
This scenario contrasts with previous concerns about indebtedness in the eurozone, showing that economic recovery can mitigate risks associated with the public debt of these southern European countries.
