x

Economy

Greece’s Economy to Shrink by Estimated 8.2% This Year

ATHENS — Greece's economy will contract by an estimated 8.2% this year due to the effects of the coronavirus pandemic before picking up next year, the government said Monday as it submitted its 2021 draft budget to parliament.

The 2021 budget was "drawn up in an environment of unprecedented uncertainty, due to the indefinite expiration date of the unprecedented coronavirus pandemic," government spokesman Stelios Petsas said.

Greece emerged nearly two years ago from eight years of international bailout programs, during which it made deep spending cuts and tax increases to qualify for rescue loans. Its financial crisis sent unemployment skyrocketing and wiped out a quarter of the economy. 

The country's public debt is projected to reach 337 billion euros this year, or 197.4% of gross domestic product. That would fall slightly to 342 billion euros, or 184.7% of GDP, in 2021, according to the draft budget. Unemployment is forecast to rise to 18.6% this year, compared with 17.3% last year, before dipping to 16.5% next year.

Petsas said the recession forecast for 2020 is less severe than the 8.7% contraction estimated for the eurozone as a whole. The economy is expected to bounce back 7.5% next year, so that "Greek people's income will remain almost unchanged" during the two-year period, the budget said.

The primary budget balance – that is, the government's budget without taking into account the cost of servicing debt – will tumble to a deficit of 6.2% this year, and remain in a deficit of about 1% next year.

RELATED

ATHENS - With the economy accelerating, Greece plans to make an early repayment of 8 billion euros ($8.

Top Stories

Columnists

A pregnant woman was driving in the HOV lane near Dallas.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

Video

1 of 2 Abducted Louisiana Children is Found Dead in Mississippi after Their Mother is Killed

JACKSON, Miss. (AP) — A Louisiana woman was found dead in her home Thursday, and her two young daughters were abducted and found hours later in Mississippi — one dead and the other alive, police said.

ATHENS – Acknowledging disappointing results in the European Parliament elections for New Democracy, Prime Minister Kyriakos Mitsotakis said there won’t be early elections in Greece and dismissed any idea of taking New Democracy further right.

NEW YORK – This year, Leros New York is the standout team in the Premier Division of the Long Island Soccer Football League (LISFL) – and beyond.

ROME - There were multiple triumphs for Greece this week at at the European Athletics Championships in Rome.

LAUSANNE, Switzerland (AP) — The Spanish team for men's soccer at the Paris Olympics got permission Thursday from the IOC to select two players who previously played for other countries.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. [email protected]

You may unsubscribe at any time using the link in our newsletter.