Greek economy to grow by 3.5 pct in 2021 and 5.0 pct in 2022, EU Commission report says

The Greek economy will grow by 3.5 pct this year and 5.0 pct in 2022, the European Commission said in its winter economic forecasts released on Thursday. In the report, the EU’s executive said economic recovery will continue, supported mostly by private consumption due to a gradual reopening of retail commerce, improving consumer confidence and a supportive fiscal policy. Net exports are expected to positively contribute to economic growth in 2021 and 2022, while a vaccination programme is expected to support a gradual return of tourists in Greece.

The Commission said that Greek GDP grew by 2.3 pct in the third quarter of 2020 after the reopening of the economy and a temporary easing of restrictive measures, although the re-introduction of restrictive measures in the fourth quarter of the year is expected to lead to a contraction of GDP in comparison with the third quarter. Greece’s GDP is expected to have contracted by 10 pct in 2020.

The winter economic forecasts report said that the Eurozone economy will grow by 3.8 pct in 2021 and 2022, while the EU economy is expected to grow by 3.7 pct in 2021 and 3.9 pct in 2022, while the inflation rate is expected to rise from 0.3 pct in 2020 to 1.4 pct in 2021 and ease to 1.3 pct in 2022.