Greece is on course for a strong economic rebound this year and next, supported by the release of pent-up demand, monetary and budget stimulus, and European Union funds, Scope Ratings said on Thursday in a note to investors.
It did caution, however, that “the country is vulnerable to another muted tourism season as Covid-19 infections rise again.”
In June, Scope Ratings revised the 2021 growth forecast for Greece (BB/Positive Outlook) up to 6.5%, before 3.6% in 2022, but recognizes downside economic risk due to threats to the all-important tourism sector over the summer period.
Similar to several other parts of Europe, confirmed daily Covid-19 cases in Greece have risen to near-record highs amid transmission of the Delta variant, although mortality has thus far stayed low, with 45% of Greeks being fully vaccinated at this stage, Scope noted.
It added that “data since the gross domestic product for the first quarter have been robust, with substantive improvements in economically-relevant mobility within Greece’s borders after domestic re-openings started in April, notwithstanding a modest reversal in July.”