The Greek economy shrank a massive 10 percent in 2020, the European Commission estimates in its winter economic forecasts report published Thursday.
Lockdown measures starting in November negatively affected growth in Greece, which had seen its gross domestic product rise 2.3 percent quarter-on-quarter in the third quarter of 2020 (July-September). This is true of most European Union economies.
Because of the lockdown, the Commission forecasts weaker growth in 2021; Greece’s GDP is expected to rise 3.5% (versus 5% previously), but the rebound will be stronger in 2022 (5% instead of 3.5%) on the strength of consumption and exports.
The Commission says the vaccination rollout, geopolitical tensions in the area and the migration crisis could negatively affect recovery. “On the upside, the forecast does not incorporate the impact of the Recovery and Resilience Plan,” it says.