Despite the significant rise in inflationary pressures, the Greek economy continued to grow quickly during the first half of 2022, at a rate of 4.1% over the period. Nonetheless, real GDP fell back 0.5% q/q in Q3 despite tourism activity holding up well and the labour market being resilient. Indeed, the unemployment rate dropped during Q3 2022 (-29k), hitting its lowest level since December 2009 [...]
After surging above 10% this spring, inflation will be the main headwind hampering Greek GDP growth in 2022. Yet the economy has proven to be resilient so far. Unemployment has been at the lowest rate since 2010, and GDP has rebounded robustly since the end of lockdown measures in 2020. A recession is unlikely this year, especially since tourism is primed for a solid summer season [...]
The Greek economy has surprised on the upside so far in 2021. Real GDP growth is expected to exceed 7% this year. The unemployment rate has fallen to 13% in September. This improvement has allowed the banking sector to continue its clean-up, with a non-performing loan ratio close to the 20% threshold at the beginning of the summer. Difficulties on the economic, social and banking front remain amongst the most pressing in the European Union [...]
Even though the economic situation in Greece remains difficult, notable improvements are visible. This positive trend is likely to continue in 2022, if the health context remains favorable.
The Greek economy is recovering relatively quickly from the Covid shock of 2020, judging by the GDP and employment figures released in early September. Real GDP grew 3.4% q/q in Q2 and was 0.6% higher than pre-Covid levels. Since the beginning of the pandemic, Greece has reported the fourth strongest rebound in activity among the 19 Eurozone member countries. Even though household consumption remained fragile in Q2 (+0.9% q/q) due to health restrictions, investment was once again solid (+4 [...]
The Greek economy is proving resilient, with the recovery through to Q1 2021 being faster than in most other Eurozone members. This has been driven primarily by the very significant increase in goods exports. The spread of the Delta variant in Europe represents a threat to the recovery in the tourism sector, which is essential to bolster growth and employment over the coming months. Pending this, the labour market shows continued fragility. The unemployment rate climbed to 16 [...]
Greece’s economic recovery will be fraught with uncertainty in 2021. The Covid-19 hit to activity could last longer in the tourism industry – a key sector for the country – than in other sectors. The decline in tourist inflows in summer 2020 has limited significantly the rebound in Q3 GDP, which was much weaker than in other European countries. Some confidence indicators, particularly regarding the unemployment outlook, have worsened during the autumn [...]
Although the second wave of the epidemic appears to have peaked in mid-November, the economic outlook, particularly for the labour market, is worrying in Greece as it is in other countries. The consumer unemployment expectations index, published by the European Commission, is deteriorating again, and posted in November its worst reading since August 2013. The hard unemployment data from the Greek statistical service are traditionally lagging: the latest data are for August [...]
Despite successfully managing the Covid-19 pandemic, Greece will not avoid a severe recession in 2020. The tourism industry – which accounts for nearly 20% of the country’s GDP – offers no guarantee for a solid recovery. The prospect of a resurgence in contamination in Europe will weigh on the tourism sector in the coming months. The Greek banking system will further weaken, and public debt will rise sharply [...]
Supported by catching-up effects, the Greek economy managed to accelerate slightly despite a slowing European environment. Confidence indices have improved strongly and the Greek state has successfully returned to the capital markets. The new centre-right government is seeking to cut taxes on labour and capital without sacrificing fiscal discipline. The recovery will be a long process, but it is on track.
The economic recovery continues. Growth is accelerating and for the moment it has reached the lower range of expectations. After four and a half years in power, Alexis Tsipras passes on the helm to Kyriakos Mitzotakis, leader of the centre-right New Democracy party, which has led in the polls since 2016. The new Prime Minister is unlikely to call into question the prescribed public finance trajectory as the country exits the European financing programme.
Although the Greek economy continues to recover, so far its performance has fallen somewhat short of expectations. After exiting the European financial assistance programmes, Greece’s executive arm has regained some freedom to act, although it is still under “enhanced supervision” [...]
Greece is preparing to exit the European bailout programme. Activity is slowly picking up, driven by a positive economic environment and renewed confidence boosted by the programme’s smooth progress and prospects of it coming to an end. The country must now kick start its economic recovery. Greece has a large budget surplus before debt interest payments, and is preparing its return to the capital markets. Public debt is high (180% of GDP), but will only be refinanced very gradually [...]
Greece is a parliamentary republic. Intra-EU trade accounts for 57% of Greece’s exports (mostly Italy and Germany); outside the EU Turkey and the United States are important ecnomic partners.The economy has been badly hit in 2020 particularly due to a collapse in tourism activity, which represents the most important sector in Greece. Prior to the COVID-19 epidemic, the Greek economy was still recovering from its public debt crisis that engulfed the country into a sharp recession (2011-13). This had forced the government to adopt a combination of tax increases, spending cuts and other severe austerity measures. Unemployment remains stubbornly high and the level of GDP per capita (adjusted for purchasing power parity) considerably below 2008 levels. Bank balance sheets were still significantly impaired, with the highest level of non-performing loans in the European Union. Nevertheless, past labour and product market reforms had improved Greece’s competitiveness over time. Rising goods and services exports had supported a recovery in economic growth and jobs in recent years. As a relatively small economy, Greece relies heavily on the external sector, with goods and services exports.
