NEWS

Greek economy will shrink 5%-8% in 2020, minister says

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Deputy Finance Minister Theodoros Skylakakis estimated that Greece's GDP will shrink by 5-8 percent in 2020 and, in any case, shrinkage will be contained below 10 percent.

For 2021, Skylakakis estimated GDP growth similar to that of 2019 (1.87 percent) or a little higher.

The unexpected recession brought on by the coronavirus pandemic, and the resulting drop in state revenue, will delay, but not derail, government plans for tax and pension contribution cuts.

“We will certainly be able to make these cuts in the period 2021-2023, when we will start getting European (emergency aid). But we will have a problem implementing cuts in 2021,” because of the drop in revenue, Skylakakis told TV station ANT1 Sunday.

Speaking on the 2021 budget, Skylakakis said: “we will certainly be able to reduce social security contributions, but what else we can do in a difficult and uncertain budget since we can't yet predict recession with any precision, I can't say yet,” Skylakakis said.