Greece’s now revised Stability Pact includes two “scenarios” for the post-lockdown period , with a “best” and “worst” case scenario of a 4.7-percent and 7.9-percent recession, respectively, for the current coronavirus-battered year.
The forecasts, in fact, are benchmarked by a 10-percent economic implosion that the government says would materialize without stimulus and subsidy measures. A 10-percent recession for 2020, however, is the forecast by the IMF for Greece, with a recovery in 2021 only covering half the “lost ground”, i.e. slightly above 5 percent.
The total value of measures announced by the Mitsotakis government is 17.35, as per its calculations, or some 10 percent of GDP in current figures. The value in terms of actual flow is 11.5 billion euros, on an annual basis.
The fiscal cost will reach 10.35 billion euros up until June 2020, or 9.5 billion euros on an annual basis, if the latter figure calculates a restoration of current measure to suspend social security contributions and taxes.
