Greece's GDP contracted by 9% in 2020, according to revised official statistics released on Friday, more than initially announced, as the impact of the pandemic on the economy was worse than expected.
A first estimate in March reported a decline of 8.2% of GDP for 2020. The Greek statistics institute indicates that this downward revision “
reflects the impact on growth of the Covid-19 pandemic and restriction measures put in place
”.
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The Greek government expects a solid rebound in GDP this year thanks to the good performance of the tourism sector.
According to the preliminary draft budget for 2022 presented at the beginning of the month, the government expects GDP growth of 6.1% in 2021 and then 4.5% in 2022. The downward revision for 2020 has taken place after better than expected growth in the second quarter of 2021 and while the tourism sector should do better than expected in the third quarter.
The IMF has also revised upwards its forecast for Greece and now forecasts growth of 6.5% this year, before slowing to 4.6% in 2022, according to a report released this week.
This summer, the European Commission forecast growth of 4.3% in 2021 in the country and 6% in 2022. Its next forecasts should be published in November.
