BUSINESS

Brussels forecasts Greek recession at 9% in 2020

YANNIS PALAIOLOGOS

TAGS: Economy

The Greek economy will shrink by 9% this year before rebounding by 6% in 2021, the seventh European Commission report issued on Wednesday in the context of Greece’s enhanced surveillance forecasts.

The post-bailout progress report notes the Greek authorities acted fast to contain the spread of the coronavirus and support economic activity. Yet due to Greece’s great dependence on tourism and the large share that services and small and medium-sized enterprises have in the economy, the country “will possibly be affected more than other member-states,” the EC argues.

Brussels acknowledges that Greece has recorded significant progress in major reforms in recent months, the most important being the finalization of the blueprint for the overhaul of the bankruptcy code. The report also notes the progress achieved in energy policy, investment licensing and public administration.

Furthermore there are positive references to the expansion of the policy for short-term labor support – to be boosted by over 2.7 billion euros from the European program known as SURE – and to the upgrading of professional training and digital governance.

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