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Παρασκευή, 02 Οκτωβρίου 2020 23:04

IMF recommends mild fiscal readjustment for Greece in 2021

The IMF on Friday released its forecast for the Greek economy during the current, and coronavirus-battered year, predicting a contraction by 9.5 percent, before recovering in the medium term.

The IMF on Friday released its forecast for the Greek economy during the current, and coronavirus-battered year, predicting a contraction by 9.5 percent, before recovering in the medium term.

The country will post a primary budget deficit of 6.75 percent, as a percentage of GDP,  in 2020, caused by the pandemic's repercussions on the economy, especially the all-important tourism sector, and increased state spending towards affected businesses and their employees.

According to the IMF, "Greece's heavy reliance on tourism makes it particularly vulnerable. A rebound is expected in 2021–22 to reach an average 5% growth annually."

The report is found here:

https://www.imf.org/en/News/Articles/2020/10/02/mcs100220-greece-staff-concluding-statement-of-the-second-post-program-monitoring-mission