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.

Advertisement

Share:

KEEP UP TO DATE WITH TGH

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

Advertisement

Latest News

Magna Graecia – Part 6: The eternal return

Across this series, we have journeyed through the Greek settlements of southern Italy, tracing how Hellenic civilisation spread.

Kiato: Greece’s seaside town loved by locals and the diaspora

Kiato is a seaside town, about 25 kilometres from Korinthos on the northern coast of the Peloponnese. On the national highway.

Changing your name and surname abroad and in Greece

It is generally known that in Greece to live and work many foreigners have acquired Greek citizenship by naturalisation or by determination.

Action over inertia: Building the future of the Greek diaspora in Australia

It is necessary that we now be led to the need of finding mechanisms that will halt the demographic withering, the social inertia and the cultural thinning.

Costeen Hatzi opens up on life after Nick Kyrgios split

Costeen Hatzi has spent her summer in Europe, enjoying her first overseas girls’ trip, a milestone that carried extra meaning for her.

You May Also Like

Greek Australian school captain celebrates VCE results

Bentleigh Secondary College school captain Tia Lambas was supported by her mum this morning as she nervously awaited her VCE results.

Two Flames: Manolis Charos in the footsteps of Dionysios Solomos

In 2023, an exhibition "Dionysios Solomos... Two Flames... Manolis Charos" was a tribute to Greece’s national poet, Dionysios Solomos.

Complete list of 67 Greek-Australians running in local elections in Victoria

By Dean Tsoubakos. With local government elections in Victoria officially underway from this week, The Greek Herald presents a complete list of all the Greek...