LONDON — The Greek economy will contract by around 8.0 pct this year and will return to positive growth rates in 2021 although the negative effects of the pandemic will expand in the first half of next year, said Nikos Karamouzis, chairman of Grant Thornton and executive chairman in SMERemediumCap in an article on Thursday.

Karamouzis said conditions in Greece and globally were extremely difficult and uncertain due to the adverse effects of the pandemic and noted that an unprecedented fiscal and monetary intervention was needed worldwide to ease the negative effects on the economy and society. Any forecasts were extremely risky and the outlook was not positive since there were no clear signs over finding and distributing reliable medicines and vaccines, he added.

He stressed that Greece will have to face five crucial medium-term challenges after exiting the pandemic, such as fiscal conditions in Greece and abroad, current low interest rates and borrowing risk premium offered by ECB, which are not sustainable in the long-term, increasing financial burden on Greek enterprises, reforms and issues related with financing from the Recovery Fund in the next seven years.