Greece says coronavirus to drive economy into recession

·

Greece’s economy will contract this year because of the coronavirus lockdown but the projected recession will be temporary, the finance minister said on Tuesday.

It was a rapid re-estimation as the minister had projected eight days ago that the economy would weather the coronavirus storm and grow just over 0%.

“The situation in Greece’s economy has deteriorated and continues to deteriorate,” Christos Staikouras said in a televised address. “The crisis is deep, it will become deeper and the economy will turn into recession in 2020.”

Greece, which exited its latest bailout in 2018 and was recovering after a multi-year downturn, had been projecting that its economic output would increase by 2.8%.

Staikouras said the downturn will be temporary but the damage to the economy in the short term would be significant.

The country confirmed 48 new cases of coronavirus on Tuesday, bringing the total since its first recorded case on Feb. 26 to 743 people, including 20 people who died. More than 130 people are being treated in hospital.

Among the latest cases were 21 Greek passengers of two flights from Spain, who the state put protectively in quarantine in a hotel earlier this week.

“It was a health bomb ready to explode,” crisis management minister Nikos Hardalias said.

Greece has imposed a curfew restricting the movement of people, with few exceptions, and has halted arrivals from non-EU citizens and those from Italy and Spain. It has also shut down hotels across the country.

Tourism is the Greek economy’s main driver and the sector expects hundreds of millions of euros in revenue losses.

Prime Minister Kyriakos Mitsotakis said last week the government would inject 10 billion euros to support the economy through tough times due to the coronavirus outbreak.

Sourced by: Reuters

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

Zeibekiko Festival Australia kicks off in Sydney with music, memory and movement

The 3rd Zeibekiko Festival Australia launched in dazzling style on Friday, 3 October 2025, at the Greek Community Club in Sydney.

Sydney father Artemios Mintzas identified as alleged Croydon Park gunman

Police have identified the man accused of opening fire on pedestrians, drivers and officers in Sydney’s inner west as Artemios Mintzas.

Service, culture, and unity: Greece’s new Consul General in Sydney sets out his vision

Greece’s new Consul General in Sydney, George Skemperis, speaks to The Greek Herald about diplomacy, unity, and the vibrant Greek Australians.

Greek school memories: Honouring the teachers who shaped our language and lives

Both the negative and heartfelt stories of Greek school have a way of becoming core memories for Greek Australians.

Spotlight on VCE Greek teacher Kristian Raspa

Sunday, October 5th is World Teachers’ Day and gives us the opportunity to celebrate the influential educators who have shaped our lives.

You May Also Like

Australia and Greece modernise air fleets with new Black Hawk helicopters

Australia and Greece have recently made strides in modernising their defense by placing major orders for the UH-60M Black Hawk helicopter.

Dior’s Paris show seeks inspriation from ancient Greek goddesses

Dior's Maria Grazia Chiuri took inspiration from ancient Greek womenswear to create a feminine, modern collection for the fashion house's Haute Couture Spring/Summer 2020...

GCM Seminar: 1821 Birth of a Nation State

Professor Thanos Veremis will give an online lecture entitled '1821 Birth of a Nation State' as a part of the GCM's Greek History and Culture Seminars.