Greek economy to grow in 2021; coronavirus vaccine a positive factor

The Greek economy’s transition from 2020’s deep recession of 10.5 pct to a growth opposite in 2021, is reflected in the figures of the new state budget, government sources said on Saturday.

Positive developments regarding the coronavirus vaccine -that create reasonable optimism and render the end of the pandemic visible- pave the way for this transition, alongside some 31.4 billion euros in support measures taken by the government for households and businesses, was added.

All the basic forecasts regarding the new state budget are based on the scenario that restrictive measures against the coronavirus, parallel to economic support measures, will all continue until April, when the pandemic is expected to decline significantly.

In this context, Greek economy is estimated to grow by 4.8 pct in 2021, while the primary budget deficit will be reduced to 3.88 pct of GDP or 6.670 billion euros, from the 7.2 pct of GDP or 11.760 billion euros in 2020. If the pandemic lasts longer, the primary budget deficit of 2020 is estimated to increase by some 1.5 percent of GDP.