BRUSSELS — The Greek economy is expected to grow by 4.3 pct in 2021 and by 6 pct in 2022, the European Commission said in its summer economic forecast report released on Wednesday.
The Commission revised its previous forecast for the Greek economy slightly upwards for this year, while its forecast remained unchanged for 2022.
More specifically, the EU's executive said that Greece managed raise the seasonally-adjusted real GDP by 4.4 pct in the first quarter of 2021, despite restrictive measures implemented in January. The Commission said that economic growth was mainly driven by net exports, particularly exports of services. On the other hand, private consumption fell 1.3 pct on a quarterly basis, while a scheduled increase in property taxes in 2022 gave a boost to the construction sector. The Commission said that social distancing measures begun easing early in May, followed by an increase of confidence indicators, while industrial research showed a reappearance of foreign demand for Greek goods. A recovery in exports of services is related with the reopening of tourism. Optimistic employment plans in most business sectors are expected to help bring the unemployment rate slightly down in 2021. Fiscal measures taken earlier in the year, combined with the boost from a national recovery plan are expected to boost domestic demand – the main growth tool in 2021 and 2022. Real GDP is projected to grow by up to 4.3 pct in 2021 and 6 pct in 2022. The annual inflation rate is expected to reach -0.4 pct this year and 0.5 pct in 2022. The Commission said its forecasts were subject to a high level of uncertainty.