The IMF estimates that the effects of the coronavirus crisis on the Greek economy will be devastating due to the hard impact on tourism.
In its World Economic Outlook report released in Washington, the ‘good case’ scenario predicts a 10% recession in Greece this year, the largest in the Eurozone, even worse than in Italy with 9.1%. However, it predicts a recession of only 2.8% for Malta and 6.5% (for Cyprus) and above for all other EU countries.
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In the “bad case scenario” for the Greek and international economy, it predicts an even bigger recession, of 13% for this year and a further 8% drop in 2021!
Based on the current data, the IMF predicts an explosion of unemployment to 22.3% of the workforce or about 235,000 unemployed for Greece in 2020, while for 2021 it gives a growth forecast of 5.1%.
For the global economy, the Report also forecasts a recession of 3% or 6 points lower than the Fund’s initial forecasts 6 months ago. The IMF directly compares the intensity and extent of the current crisis with that of the Great Depression of 1930.