Greek economy hit hardest by the coronavirus pandemic, EU says

·

The Greek economy is set to contract by 9.7 percent in 2020 because of the COVID-19 pandemic, the European Commission forecast on Wednesday.

Greece, along with Italy, Spain and Portugal, will be among the hardest hit nations by the economic effects of the pandemic.

It is believed that Italy will record the second deepest recession, amounting to 9.5 percent GDP loss, followed by Spain, with 9.4 percent.

“Economic activity in Greece, Italy, Spain, Croatia, and to a lesser extent France, are forecast to contract the most,” said Paolo Gentiloni, European Commissioner for the Economy, during a press conference.

Data showing the effects of the coronavirus pandemic on EU members. Source: European Commission.

According to the Commission, Greece’s main export markets are also expected to suffer strong declines in 2020, leading to a drop in demand for Greek goods and services.

“Despite the swift policy response, the strong contraction in output is forecast to take a toll on employment,” the Commission states.

A recent report released by the Federation of Hellenic Enterprises (SEV) did find that Greece’s unemployment rate would record the biggest increase in a decade, but the Commission says a partial economic recovery in 2021 will lessen the pandemic’s impact on labour.

“The partial recovery in 2021 is expected to have positive effects on the labour market, bringing the unemployment rate down from 19.9 percent in 2020 to about 16.5 percent.”

Data showing the effects of the coronavirus pandemic on Greece. Source: European Commission.

READ MORE: Unemployment rate in Greece to record biggest increase in 2020.

With Greece slowly returning to normalcy following the loosening of COVID-19 restrictions, only time will tell what the true economic impacts of the pandemic will be.

Cretan Convention - Web Banner

Advertisement

Share:

KEEP UP TO DATE WITH TGH

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

Advertisement

Latest News

Sydney Olympic at a crossroads: Damon Hanlin on Belmore, finances and the future

As construction threatens its home, Sydney Olympic enters a new era - chasing stability, respect and results on the national stage.

Cypriot community gathers in Sydney to mark 65 years of the Republic of Cyprus

The Cyprus Community of NSW hosted a special commemoration on Sunday, marking 65 years since the establishment of the Republic of Cyprus.

Sydney’s Lemnian community marks 113 years since the liberation of Lemnos

The Lemnian Association of Sydney and New South Wales “Maroula” marked the 113th anniversary of the liberation of Lemnos.

Pan-Macedonian Association marks 42 years of Dimitria Festival in Sydney

With full formality, the Macedonian celebrations “Dimitria” began on Sunday, October 5, 2025. This year marks the 42nd consecutive year.

Australian Embassy in Athens hosts book launch on Australia’s first Greek female settler

The Australian Embassy in Athens hosted the launch of Η Πρώτη Έποικος (The First Settler) on Wednesday, 1 October 2025.

You May Also Like

Greek Independence Day around the world looked different this year as Greeks sang from balconies and celebrated online

Although coronavirus restrictions led to the cancellation of large gatherings, Greek pride was still on display around the world as thousands sang from balconies and went online to celebrate Independence Day.

Turkey will cover Hagia Sophia mosaics during prayers, says ruling party spokesman

Mosaics in Hagia Sophia will be covered by curtains or lasers during times of Muslim prayer, the spokesman for Turkey’s ruling AK Party said on Monday.

Margaret Thanos on misinformation about COVID vaccines and women’s health

As Margaret Thanos waited to get her first dose of a vaccine to protect her against COVID-19, she found herself crying.