The European Commission forecasts for Greece a strong growth of 7.1% in 2021 and 5.2% in 2022, in its autumn economic forecasts, which was published today, revising upwards its forecasts for 2021, compared to July (4.3%) and slightly downwards for 2022 (6%).
According to the Commission report, the recovery of the Greek economy is gaining ground, mainly due to domestic demand and the better than expected tourist season.
The impact of the pandemic is expected to gradually subside, while facilitative fiscal and monetary policy, combined with strong impetus from the Recovery and Sustainability Plan, are set to maintain momentum in the future.
Emergency support measures are being adapted to the evolving needs of the economy and are expected to be largely abolished by the end of 2021, supporting the reduction of the general government deficit.
“The recovery of the Greek economy gained momentum in 2021”, the Commission emphasizes. In the second quarter of 2021, the Greek economy recovered significantly by 3.4% compared to the previous quarter. Real GDP reached pre-epidemic levels in the second quarter of 2021.
The oldest olive tree in the world is in Greece
The recovery is due to domestic demand, especially investment, and savings, while continued fiscal stimulus has played a critical role in supporting the economy.
The authorities continue to provide targeted and temporary support to the economy, in particular to maintain employment.
The unemployment rate fell in the summer, supported by more recruitment in the tourism sector.
