ECONOMY

Economy ‘in uncharted territory’

economy-in-uncharted-territory

The Hellenic Federation of Enterprises (SEV) commented on Thursday that the suspension of tax and social security payments by companies due to the coronavirus epidemic is a step in the right direction but not enough to tackle the effect of a drop in demand from the upcoming slide in consumer confidence.

In its monthly bulletin, SEV states the measures it considers sufficient to support any companies that face problems relating to the drop in demand, proposing tax rebates and the reduction of deducted taxes. “Particular attention should be paid to bad loan management practices after April 30, when the protection procedures for vulnerable households” are terminated.

The situation with the Covid-19 outbreak points to strong recessionary effects in mostly uncharted territory, the bulletin notes, both for the local and the international economy, although it adds that the slowdown in economic activity is expected to reverse in the medium term.