Report: Greek Economy to Begin Gradual Recovery From 2021

December 1, 2020

ATHENS — Greece’s economy is set to contract by 10 pct in 2020 and to recover gradually in 2021, as ongoing virus outbreaks and restrictions weigh on services' activity, exports, employment and investment. In 2022, the recovery is projected to accelerate, as the virus is better controlled with a vaccine having become more generally deployed, restrictions being eased globally and the government implementing new investment projects, the Organisation for Economic Cooperation and Development (OECD) said in its Economic Outlook report released on Tuesday.

The Paris-based organisation said it expected the Greek economy to contract by 10.1 pct this year, to grow by 0.9 pct in 2021 and by 6.6 pct in 2022. The unemployment rate is projected to reach 16.9 pct of the workforce in 2020 from 17.3 pct in 2019, rising to 17.8 pct in 2021 and falling to 17.2 pct in 2022. OECD said that controlling the pandemic sooner would hasten the recovery, reducing risks of rising insolvencies, non-performing loans and declining well-being. Extending and expanding support for households suffering income loss as the crisis continues would limit the drag on consumption and well-being, without locking workers into activities facing weak demand. Extending and better targeting liquidity support would help viable firms to stay in business. The draft 2021 budget prioritises cuts to personal income tax and social contribution rates, which will support longer-term employment growth. Strongly expanding effective training programmes would help to ensure that workers have the skills that the labour market will need after the crisis.

The OECD also envisages that the general government's deficit will reach 9.4 pct of GDP this year, after a surplus of 1.5 pct in 2019, falling to 7.0 pct and 2.6 pct in 2021 and 2022, respectively. The general government's debt is projected to reach 213.7 pct of GDP this year, falling to 207.6 pct in 2021 and 194.6 pct in 2022.



ATHENS - Greece's primary surplus stood at €1.

Top Stories


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.


Immigrant Families Rejoice over Biden’s Expansive Move Toward Citizenship, While Some are Left Out

HOUSTON (AP) — Hundreds of thousands of immigrants had reason to rejoice when President Joe Biden unveiled a highly expansive plan to extend legal status to spouses of U.

STUTTGART, Germany  — Jamal Musiala is lighting up the European Championship and showing just why his teammates think the 21-year-old forward can go on to become one of the best players in the world.

ATHENS, Greece  — Scores of Greek firefighters and water-bombing aircraft succeeded late Wednesday in taming a large wildfire on the fringes of Athens that forced authorities to evacuate two nearby settlements.

BOSTON  — A blistering heat wave Wednesday extended from the Midwest to New England, leaving millions of people sweltering through the Juneteenth holiday, including in places like northern Maine where they rarely experience such conditions this early in the year.

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.