The real non-tariff barrier called CRA

The sovereign ratings that the big three credit rating agencies assign a country impact its access to and cost of borrowing in international markets. REUTERS/Brendan McDermid/File Photo/File Photo But first a story on the sovereign rating trajectory of Greece and India. India has shown amongst the strongest post-Covid recovery with its GDP growing 7.5% post 2021 to Greece’s 5.6%. A casual observer may be forgiven for concluding that CRAs are embarrassed to give Greece anything but an investment grade rating, while India, which the MSCI emerging markets index recognises as the top destination pipping even China, South Korea and Taiwan, is set a much higher bar. India’s interest rate tends to remain 2 to 2.5 percentage points below nominal GDP growth or never in any risk of a debt trap.