The European Commission’s autumn economic forecasts reveal that a previous estimate of a 9-percent recession for the year remains unchanged, compared to the summer forecasts. At the same time, the Commission lauds the Greek government for the support measures it has taken.
On an ominous note, the Commission revised its forecast, downwards, for the Greek economy in 2021, saying the economic recovery will grow by an estimated 5 percent, down from a previous forecast of 6 percent; 3.5 percent in 2022.
The country is expected to post the fifth biggest recession in the Eurozone after Spain, Italy, France and Portugal.
Greece’s primary budget deficit will stand at 6.9 percent of GDP for 2020, falling slightly to 6.3 percent in 2021. In terms of the external debt, it is forecast to reach 207 percent of GDP, easing to 200.7 percent of GDP in 2012 and 194.8 percent in 2022.
The Commission estimated that the all-important tourism sector imploded by 65 to 71 percent, while Greece also had the biggest drop in overnight stays, now by some 80 percent.
