Greece’s economy is expected to contract by 9.5 percent in 2020, before gradually recovering over the medium term, the International Monetary Fund (IMF) said on Friday, in its staff concluding statement of the second post-program monitoring mission, ANA reports.
“Greece’s heavy reliance on tourism makes it particularly vulnerable. A rebound is expected in 2021-22 to reach an average 5 percent growth annually, backed by the Next Generation EU (NGEU) funds and a recovery in foreign demand. As the NGEU gradually phases out, growth is projected to return to its long-term potential rate of 1 percent.”
The IMF described the government’s quick response to the pandemic as “commendable”, saying that “timely implementation of travel restrictions, a ban on public events, and other social distancing measures helped contain the initial outbreak.” It cautioned against the rising infections recently, but said that “the authorities’ economic support package is sizable, timely, and appropriately composed mostly of temporary on-budget measures targeted to hard-hit households and businesses.”
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