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Greek economy after COVID-19

As the coronavirus is continuing its spread across the world, the economic impact of the pandemic has become the main subject of consideration. Undoubtedly, each country will come up with different ways to recover from the crisis, taking their strategies and available resources into account. As far as Greece is concerned, the country’s hesitant economic recovery is now being threatened by the lockdown affecting most of the European countries.

According to the International Monetary Fund (IMF), Greece could experience a severe recession due to the coronavirus. The IMF underlines that Greece will see a drop of 10 percent of its gross domestic product (GDP) in 2020. The reason is that the leading industries, such as tourism, real estate, and investments have been hardly affected during the quarantine. More precisely, the closures of businesses and restrictions on travel and movement will have acute effects on the output level, household spending, business investment, and international trade.

However, the Greek government have rolled out several support measures in the middle of the March so as to help the economy. Specifically, the government officials said that they were ready to inject €10 billion in order to support the Greek economy. They also doubled efforts to protect jobs, announcing that companies firing people will be excluded from measures such as social insurance and tax obligation suspensions. Not only are these measures meant to support the Greek economy, but also they ensure faster GDP recovery in 2021. Finally, it should also be mentioned that the IMF predicts 5.1% economic growth in the future, which is slightly higher than 4.7 percent of the EU average rate.