NICOSIA, May 25 (Xinhua) -- Moody's Ratings has upgraded Cyprus' economic outlook from stable to positive, affirming its long-term credit rating at Baa2, two notches above investment grade.
In a statement emailed on Saturday, the rating agency said this upgrade reflects Moody's confidence in the country's potential for strong fiscal and debt outcomes over the next few years.
"This optimistic scenario is anticipated to result from the continuation of prudent fiscal policies and strong medium-term economic growth prospects," which will result in significant fiscal surpluses, Moody's statement said.
Moody's said it anticipates a fiscal surplus of around 2.3-2.4 percent of its annual gross domestic product (GDP) for 2024-25, slightly lower than the government's forecast of 2.8-2.9 percent of GDP.
Cyprus' public debt is projected to drop under 65 percent of GDP by 2025.
The country's debt was once so worrying that its economy came to the brink of a meltdown in 2013 and was saved by a Eurogroup bailout in the same year.
President Nikos Christodoulides said the upgrading by Moody's was a significant development. Finance Minister Makis Keravnos also hailed Moody's decision, saying the government will continue to ensure growth and employment while maintaining healthy public finances.
